48,000. A total of 5,000 units of product TB are produced from the joint process. Product TB can be sold at the split-off point for P24 per unit, or it can be processed further for an additional total cost of P15,000 and then sold for P26 per unit. If product TB is processed and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?
48,000. A total of 5,000 units of product TB are produced from the joint process. Product TB can be sold at the split-off point for P24 per unit, or it can be processed further for an additional total cost of P15,000 and then sold for P26 per unit. If product TB is processed and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Two products, TB and ID, emerge from a joint process. Product TB has been allocated
P31,200 of the total joint costs of P48,000. A total of 5,000 units of product TB are
produced from the joint process. Product TB can be sold at the split-off point for P24 per
unit, or it can be processed further for an additional total cost of P15,000 and then sold
for P26 per unit. If product TB is processed and sold, what would be the effect on the
overall profit of the company compared with sale in its unprocessed form directly after
the split-off point?
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