PROBLEM SOLVING: This will help you develop your analytical capabinles and exercise judgement. Problem 1 Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Sales Price per Ton P50 per ton Production Sales Copra Vinegar Alcohol 1,200 tons 800 tons 1,200 tons 500 tons 500 tons P200 per ton

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PROBLEM SOLVING: This will help you develop your analytical capabinles and
exercise judgement.
Problem 1
Bulacan Chemicals purchases coconut and processes it into products such as copra,
vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs
of P60,000 were incurred up to the split-off point, at which time two saleable products
were produced: copra and vinegar. Vinegar can be further processed into alcohol.
The July 2020 production and sales data are:
Sales Price per Ton
P50 per ton
Production
Sales
Copra
Vinegar
Alcohol
1,200 tons
800 tons
1,200 tons
500 tons
500 tons
P200 per ton
Transcribed Image Text:PROBLEM SOLVING: This will help you develop your analytical capabinles and exercise judgement. Problem 1 Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Sales Price per Ton P50 per ton Production Sales Copra Vinegar Alcohol 1,200 tons 800 tons 1,200 tons 500 tons 500 tons P200 per ton
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