REQUIRED: Compute for the following 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]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. 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:TotalP150,000170,000SP.Materials usedJoint processing costFurther processing costsUnits producedP50,000P80,000P70,0006.0006,2504,250P 40.0012,000Units sold4,0009,000Unit sales priceP 50.00P 37.50

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

Answered: The cost assigned to ending inventory…

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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REQUIRED: Compute for the following

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]
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.

Exercise 8-4. JOINT COST ALLOCATION
- MARKET VALUE METHOD
SP Company produces three products: S, I and P, as the result of initial joint processing plus separable
processing after the split-off point. Records for July show the following:
Total
P150,000
170,000
S
P.
Materials used
Joint processing cost
Further processing costs
Units produced
P50,000
P80,000
P70,000
6.000
6,250
4,250
P 40.00
12,000
Units sold
4,000
9,000
Unit sales price
P 50.00
P 37.50

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