Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the Following inventories: Del Alt Tab Units produced 20,000 units 10,000 units 5,000 units Selling price at split off P150 P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P0.80 and its cost of disposal is P0.20 per unit. Answer the following with complete solution: 1. What is the value to be given to product Del? 2. What is the joint cost allocated to product Alt if the entity employs physical method? 3. What is the joint cost allocated to product Tab if the entity employs relative sales value method?

Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the Following inventories: Del Alt Tab Units produced 20,000 units 10,000 units 5,000 units Selling price at split off P150 P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P0.80 and its cost of disposal is P0.20 per unit. Answer the following with complete solution: 1. What is the value to be given to product Del? 2. What is the joint cost allocated to product Alt if the entity employs physical method? 3. What is the joint cost allocated to product Tab if the entity employs relative sales value method?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12PB: Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company...

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Subject: Cost Accounting
Subject: Cost Accounting #16