Problem 14: Accounting of By-ProductMidnight Oil Corporation manufactures Max product from a process that yieldsa by-product called YAN. The by-product requires additional processing cost ofP30,000. The by-product will require selling and administrative expensestotaling P20,000. It is Midnight Oil's accounting policy to charge the joint coststo the main product only. Information concerning a batch produced during theyear ended December 31, 2016 follows:Units Sold60,0008,000ProductUnits ProducedMarket Value at Split Off100,0008,000МаxP50YANP10The joint costs incurred up to split-off point are:Direct materialsDirect laborP2,000,000800,000200,000Factory overheadThe selling and administrative expense of Midnight Oil Corporation for the yearended December 31, 2016 is P1,000,000 exclusive of that for the by-product.Reauired: (4. What is the net income for the year if the net revenue from by-product ispresented as a deduction from the total manufacturing cost of the mainproduct?

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Problem 14: Accounting of By-Product Midnight Oil Corporation manufactures Max product from a process that yields a by-product called YAN. The by-product requires additional processing cost of P30,000. The by-product will require selling and administrative expenses totaling P20,000. It is Midnight Oil's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2016 follows: Product Units Produced Market Value at Split Off Units Sold 100,000 8,000 60,000 8,000 Маx P50 YAN P10 The joint costs incurred up to split-off point are: Direct materials P2,000,000 800,000 200,000 Direct labor Factory overhead The selling and administrative expense of Midnight Oil Corporation for the year ended December 31, 2016 is P1,000,000 exclusive of that for the by-product. Reauired: ( 4. What is the net income for the year if the net revenue from by-product is presented as a deduction from the total manufacturing cost of the main product?

Problem 14: Accounting of By-Product Midnight Oil Corporation manufactures Max product from a process that yields a by-product called YAN. The by-product requires additional processing cost of P30,000. The by-product will require selling and administrative expenses totaling P20,000. It is Midnight Oil's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2016 follows: Product Units Produced Market Value at Split Off Units Sold 100,000 8,000 60,000 8,000 Маx P50 YAN P10 The joint costs incurred up to split-off point are: Direct materials P2,000,000 800,000 200,000 Direct labor Factory overhead The selling and administrative expense of Midnight Oil Corporation for the year ended December 31, 2016 is P1,000,000 exclusive of that for the by-product. Reauired: ( 4. What is the net income for the year if the net revenue from by-product is presented as a deduction from the total manufacturing cost of the main product?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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