REQUIRED: Compute for the followinga. The cost assigned to ending inventory for each product and in total, assuming no beginninginventory and using the market value method for joint cost allocation. In completing thisrequirement, disregard the information given in requirement [b]b. The difference in operating income if the company accepts an offer from a prospectivecustomer who would be willing to buy all the output of Product I at the split-off point for P30 perunit. Exercise 8-4. JOINT COST ALLOCATION- MARKET VALUE METHODSP Company produces three products: S, I and P, as the result of initial joint processing plus separableprocessing after the split-off point. Records for July show the following:TotalP150,000SP.Materials used170,000Joint processing costFurther processing costsUnits producedP50,0006,0004,000P 50.00P80,00012,000P70,0006,250Units sold9,0004,250Unit sales priceP 37.50P 40.00

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Description: REQUIRED: Compute for the followinga. The cost assigned to ending inventory for each product and in total, assuming no beginninginventory and using the market value method for joint cost allocation. In completing thisrequirement, disregard the infor

Joint cost means the cost incurred to produce more than one units and then joint cost need to be…

Business

Accounting

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.

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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