Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the following inventories: Alt Tab Del Units produced Selling price at split off P150 20,000 units 10,000 units 5,000 units 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 PO.80 and its cost of disposal is P0.20 per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the value to be given to product Del?

A. P25,000

B. P21,000

C. P24,000

D. P20,000

Silay Company is conducting a joint production at a total costs of P500,000. The joint production
results to the following inventories:
Alt
Tab
Del
Units produced
Selling price at split off P150
20,000 units
10,000 units
5,000 units
P200
P5
Alt and Tab are considered main products while Del is considered by-product. The entity considers its
by-product as m aterial. The by-product requires additi onal processing cost per unit of P0.80 and its
cost of disposal is PO.20 per unit.
Transcribed Image Text:Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the following inventories: Alt Tab Del Units produced Selling price at split off P150 20,000 units 10,000 units 5,000 units P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as m aterial. The by-product requires additi onal processing cost per unit of P0.80 and its cost of disposal is PO.20 per unit.
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