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Sony Company produces 3 products from a joint process at a joint cost of P 52,000. Additional information is summarized below: If processed further Products SV at Split off Final SV Addtl. costs A P 28,000 P 35,000 P 4,000 B 40,000 43,000 5,000 C 32,000 42,000 6,000 Which of the following statements is correct? A. The company should process further all the products because profits will increase by P5,000. B. The joint cost of P 52,00 is irrelevant. C. Product C will produce additional income of P 3,000 if processed further. D. Product B will produce additional net income of P 38,000 if processed further

Sony Company produces 3 products from a joint process at a joint cost of P 52,000. Additional information is summarized below: If processed further Products SV at Split off Final SV Addtl. costs A P 28,000 P 35,000 P 4,000 B 40,000 43,000 5,000 C 32,000 42,000 6,000 Which of the following statements is correct? A. The company should process further all the products because profits will increase by P5,000. B. The joint cost of P 52,00 is irrelevant. C. Product C will produce additional income of P 3,000 if processed further. D. Product B will produce additional net income of P 38,000 if processed further

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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Sony Company produces 3 products from a joint process at a joint cost of P 52,000. Additional information is summarized below: If processed further Products SV at Split off Final SV Addtl. costs A P 28,000 P 35,000 P 4,000 B 40,000 43,000 5,000 C 32,000 42,000 6,000 Which of the following statements is correct?

A. The company should process further all the products because profits will increase by P5,000.
B. The joint cost of P 52,00 is irrelevant.
C. Product C will produce additional income of P 3,000 if processed further.
D. Product B will produce additional net income of P 38,000 if processed further.

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