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REQUIRED: a. Joint cost allocated to by-product X amounted to? b. Joint

REQUIRED: a. Joint cost allocated to by-product X amounted to? b. Joint

FINANCIAL ACCOUNTING
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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REQUIRED:

a. Joint cost allocated to by-product X amounted to?
b. Joint cost allocated to joint product A amounted to?

Somy Company manufactured joint products A and B as well as by product X. Cumulative joint costs data for the period showed P204,000, representing 20,000 completed units process through the Refining Department at an average costs of P10.20. Costs are assigned to A and B by market value method, which considers further processing costs in subsequent operations. To determine the cost allocation to X, the market value method is used. Additional data are as follows: A Quantity processed 2,000 8,000 10,000 Sales price per unit 20 25 Further processing cost per unit 2 5 7 Marketing and administrative expenses 1 per unit Operating profit per unit 1 LO
Transcribed Image Text:Somy Company manufactured joint products A and B as well as by product X. Cumulative joint costs data for the period showed P204,000, representing 20,000 completed units process through the Refining Department at an average costs of P10.20. Costs are assigned to A and B by market value method, which considers further processing costs in subsequent operations. To determine the cost allocation to X, the market value method is used. Additional data are as follows: A Quantity processed 2,000 8,000 10,000 Sales price per unit 20 25 Further processing cost per unit 2 5 7 Marketing and administrative expenses 1 per unit Operating profit per unit 1 LO
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