How much is the net income attributable to Product M, assuming that joint costs are allocated using the Approximate Net Realizable Value x, and after being processed further, 1,800 gallons of Product M was sold during the year?(SOLUTIONS MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WOULD BE GREAT. ACCOUNT TITLES ON THE LEFT, AMOUNTS ON THE RIGHT. USE TABLE IF NECESSARY. AVOID PARENTHETICAL SOLUTIONS. THANKS, A LOT!) TVA Company produces three products from the same process and incurs joint processing costsof P150,000.Sales price pergallon at split-offP225.50300500Disposal cost pergallon at split-offP 62.50FurtherFinal sales priceper gallonGallonsprocessing costsP 50.002,4001,100500MP350.00N150.00100.00500.00Q400.00100.00750.00Disposal costs for the products if they are processed further are:M, P 150.00; N, P 275.00; Q, P 50.00.

Joint Cost: It is the total cost that is incurred before the split-off point on the production of…

Answered: TVA Company produces three products…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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How much is the net income attributable to Product M, assuming that joint costs are allocated using the Approximate Net Realizable Value x, and after being processed further, 1,800 gallons of Product M was sold during the year?

(SOLUTIONS MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WOULD BE GREAT. ACCOUNT TITLES ON THE LEFT, AMOUNTS ON THE RIGHT. USE TABLE IF NECESSARY. AVOID PARENTHETICAL SOLUTIONS. THANKS, A LOT!)

TVA Company produces three products from the same process and incurs joint processing costs
of P150,000.
Sales price per
gallon at split-off
P225.50
300
500
Disposal cost per
gallon at split-off
P 62.50
Further
Final sales price
per gallon
Gallons
processing costs
P 50.00
2,400
1,100
500
M
P350.00
N
150.00
100.00
500.00
Q
400.00
100.00
750.00
Disposal costs for the products if they are processed further are:
M, P 150.00; N, P 275.00; Q, P 50.00.

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