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 Disposal cost per gallon at split-off P 62.50 150.00 Final sales price per gallon Gallons Further processing costs 2,400 1,100 M P 50.00 P350.00 300 100.00 500.00 500 500 400.00 100.00 750.00 Disposal costs for the products if they are processed further are: M, P 150.00; N, P 275.00; Q, P 50.00.

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?
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.
Transcribed Image Text: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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