The cost of Product E sold for the year ended July 31,2021 is:d. P1,350,000b. P1,440,000c. P990,000a. P1,470,000The cost of ending inventory for Product D is:c. P180,000b. PP225,000a. P270,000d. P540,000The Gross Profit (Loss) of Product F is:b. P101,250c. P1,226,250d. P(483,750)a. P168,750 16. Ethel Company buys Article G for P0.80 per unit. At the end of processing inDepartment 1, Article G split into producing D, E and F. Product D is sold at split-off with no further processing. E and F require further processing before they canbe sold. E is processed in department 2; and F is processed in Department 3. Thefollowing is a summary of costs and other related data for the year ended July 31,2021.Department 2Cost of Article G3Department 1DepartmentDirect MaterialsP1,440,000Direct Labor210,000P675,000P975,000Factory Overhead150,000315,000735,000Product DProduct EProduct FUnit sold300,000450,000675,000Units on hand-7/30150,000225,000SalesP450,000P1,440,000P2,126,25Ethel uses the estimated net realizable value method to allocate the joint cost.

As per NRV method, the net realizable value at split off point is used to allocate the joint cost.

The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750

The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750

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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