The following information is available for XYZ Company. Joint Costs amounted to P164,000. Products Units Produced Disposal Costs MV per unit at Split-off (in Peso) Additional Processing Costs Final MV per unit A 28,000 4,000 8.00 50,000 11.50 B 34,000 1,000 7.00 30,000 10.00 C 20,000 5,000 9.50 35,000 14.00 Show the joint cost allocation and the total costs per each product using the following different methods: 1. Physucal output method/ Average unit cost method 2. Market value at split-off method 3. Net realizable value method (approximated market value at split-off)
The following information is available for XYZ Company. Joint Costs amounted to P164,000. Products Units Produced Disposal Costs MV per unit at Split-off (in Peso) Additional Processing Costs Final MV per unit A 28,000 4,000 8.00 50,000 11.50 B 34,000 1,000 7.00 30,000 10.00 C 20,000 5,000 9.50 35,000 14.00 Show the joint cost allocation and the total costs per each product using the following different methods: 1. Physucal output method/ Average unit cost method 2. Market value at split-off method 3. Net realizable value method (approximated market value at split-off)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available for XYZ Company. Joint Costs amounted to P164,000.
| Products | Units Produced | Disposal Costs | MV per unit at Split-off (in Peso) | Additional |
Final MV per unit |
| A | 28,000 | 4,000 | 8.00 | 50,000 | 11.50 |
| B | 34,000 | 1,000 | 7.00 | 30,000 | 10.00 |
| C | 20,000 | 5,000 | 9.50 | 35,000 | 14.00 |
Show the joint cost allocation and the total costs per each product using the following different methods:
1. Physucal output method/ Average unit cost method
2. Market value at split-off method
3. Net realizable value method (approximated market value at split-off)
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