REQUIRED: Compute for the following a. The cost assigned to ending inventory for each product and in total, assuming no beginning inventory and using the market value method for joint cost allocation. In completing this requirement, disregard the information given in requirement [b] b. The difference in operating income if the company accepts an offer from a prospective customer who would be willing to buy all the output of Product I at the split-off point for P30 per unit.
REQUIRED: Compute for the following a. The cost assigned to ending inventory for each product and in total, assuming no beginning inventory and using the market value method for joint cost allocation. In completing this requirement, disregard the information given in requirement [b] b. The difference in operating income if the company accepts an offer from a prospective customer who would be willing to buy all the output of Product I at the split-off point for P30 per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
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![REQUIRED: Compute for the following
a. The cost assigned to ending inventory for each product and in total, assuming no beginning
inventory and using the market value method for joint cost allocation. In completing this
requirement, disregard the information given in requirement [b]
b. The difference in operating income if the company accepts an offer from a prospective
customer who would be willing to buy all the output of Product I at the split-off point for P30 per
unit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37e7aeed-184d-4d2a-9c92-97d9679297d5%2Fc733f65f-9cda-48a6-a265-d069eb1e0976%2Fzhessde_processed.jpeg&w=3840&q=75)
Transcribed Image Text:REQUIRED: Compute for the following
a. The cost assigned to ending inventory for each product and in total, assuming no beginning
inventory and using the market value method for joint cost allocation. In completing this
requirement, disregard the information given in requirement [b]
b. The difference in operating income if the company accepts an offer from a prospective
customer who would be willing to buy all the output of Product I at the split-off point for P30 per
unit.
![Exercise 8-4. JOINT COST ALLOCATION
- MARKET VALUE METHOD
SP Company produces three products: S, I and P, as the result of initial joint processing plus separable
processing after the split-off point. Records for July show the following:
Total
P150,000
S
P.
Materials used
170,000
Joint processing cost
Further processing costs
Units produced
P50,000
6,000
4,000
P 50.00
P80,000
12,000
P70,000
6,250
Units sold
9,000
4,250
Unit sales price
P 37.50
P 40.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37e7aeed-184d-4d2a-9c92-97d9679297d5%2Fc733f65f-9cda-48a6-a265-d069eb1e0976%2Fz7ejm3e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-4. JOINT COST ALLOCATION
- MARKET VALUE METHOD
SP Company produces three products: S, I and P, as the result of initial joint processing plus separable
processing after the split-off point. Records for July show the following:
Total
P150,000
S
P.
Materials used
170,000
Joint processing cost
Further processing costs
Units produced
P50,000
6,000
4,000
P 50.00
P80,000
12,000
P70,000
6,250
Units sold
9,000
4,250
Unit sales price
P 37.50
P 40.00
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