The breakdown of units produced by product and the corresponding selling prices after P12-6 Tacoma Corporation manufactures three different products, R, T, and W from a basic processing operation. During the period, Tacoma incurred total basic processing costs of P480.000 and produced a combined total of 16,000 units. The processing costs are allocated to three products in proportion to the relative units produced. 298 INTEGRATED COSTACCOUNTING: Principles and Applications Scanned with Camscanner the basic processing operation are summarized below: W Total R T 16,000 Units produced Selling price per unit (basic) 4,000 5,000 P50 7,000 P40 P70 Tacoma has an option to refine the three products after basic processing operations to be able to sell them at higher prices. The costs to refine the products are shows below. Note that the fixed cost of the refining operation will not be incurred if the products are not refined. T W R Variable cost per metric ton P9.00 P8.00 P5.00 Total fixed cost P42,000 P25,000 P8,000 Selling price per unit (refined) P80 P65 P45 Required: Calculate the total unit cost of each product after refining. а. b. Identify which of the product(s) should be sold after basic processing and which product(s) should be refined, if any.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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P12-6 Tacoma Corporation manufactures three different products, R, T, and W from a basic
processing operation. During the period, Tacoma incurred total basic processing costs
of P480,000 and produced a combined total of 16,000 units. The processing costs are
allocated to three products in proportion to the relative units produced.
298
INTEGRATED COST ACCOUNTING: Principles and Applications
Scanned with CamScanner
The breakdown of units produced by product and the corresponding selling prices ano
the basic processing operation are summarized below:
W
Total
T
16,000
Units produced
Selling price per unit (basic)
7,000
P70
5,000
P50
4,000
P40
Tacoma has an option to refine the three products after basic processing operations to
be able to sell them at higher prices. The costs to refine the products are shows below.
Note that the fixed cost of the refining operation will not be incurred if the products are not
refined.
T
W
R
Variable cost per metric ton
P9.00
P8.00
P5.00
Total fixed cost
P42,000
P25,000
P8,000
Selling price per unit (refiņed)
P80
P65
P45
Required:
Calculate the total unit cost of each product after refining.
a.
Identify which of the product(s) should be sold after basic processing and which
product(s) should be refined, if any.
b.
Transcribed Image Text:P12-6 Tacoma Corporation manufactures three different products, R, T, and W from a basic processing operation. During the period, Tacoma incurred total basic processing costs of P480,000 and produced a combined total of 16,000 units. The processing costs are allocated to three products in proportion to the relative units produced. 298 INTEGRATED COST ACCOUNTING: Principles and Applications Scanned with CamScanner The breakdown of units produced by product and the corresponding selling prices ano the basic processing operation are summarized below: W Total T 16,000 Units produced Selling price per unit (basic) 7,000 P70 5,000 P50 4,000 P40 Tacoma has an option to refine the three products after basic processing operations to be able to sell them at higher prices. The costs to refine the products are shows below. Note that the fixed cost of the refining operation will not be incurred if the products are not refined. T W R Variable cost per metric ton P9.00 P8.00 P5.00 Total fixed cost P42,000 P25,000 P8,000 Selling price per unit (refiņed) P80 P65 P45 Required: Calculate the total unit cost of each product after refining. a. Identify which of the product(s) should be sold after basic processing and which product(s) should be refined, if any. b.
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