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Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for this production run are P2,100. Bo Mo Lo Pounds 800 1,100 1,500 Sales price per lb. at split-off P6.50 8.25 8.00 Disposal cost per lb. at split-off P 3.00 4.20 4.00 Further processing per pound P2.00 3.00 3.50 Final sales price per pound P 7.50 10.00 10.50 If the products are processed further, Alpha Co. will incur the following disposal costs upon sale: Bo, P3.00; Mo, P2.00; and Lo, P1.00. 6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo (round to the nearest peso)?

Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for this production run are P2,100. Bo Mo Lo Pounds 800 1,100 1,500 Sales price per lb. at split-off P6.50 8.25 8.00 Disposal cost per lb. at split-off P 3.00 4.20 4.00 Further processing per pound P2.00 3.00 3.50 Final sales price per pound P 7.50 10.00 10.50 If the products are processed further, Alpha Co. will incur the following disposal costs upon sale: Bo, P3.00; Mo, P2.00; and Lo, P1.00. 6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo (round to the nearest peso)?

FINANCIAL ACCOUNTING
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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  • Using a physical measurement method, what amount of joint processing cost is allocated to Mo 
    (round to the nearest peso)?
  • Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to 
    the nearest peso)?
  • Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo 
    (round to the nearest peso)?
Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for this production run are P2,100. Bo Mo Lo Pounds 800 1,100 1,500 Sales price per lb. at split-off P6.50 8.25 8.00 Disposal cost per lb. at split-off P 3.00 4.20 4.00 Further processing per pound P2.00 3.00 3.50 Final sales price per pound P 7.50 10.00 10.50 If the products are processed further, Alpha Co. will incur the following disposal costs upon sale: Bo, P3.00; Mo, P2.00; and Lo, P1.00. 6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo (round to the nearest peso)?
Transcribed Image Text:Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for this production run are P2,100. Bo Mo Lo Pounds 800 1,100 1,500 Sales price per lb. at split-off P6.50 8.25 8.00 Disposal cost per lb. at split-off P 3.00 4.20 4.00 Further processing per pound P2.00 3.00 3.50 Final sales price per pound P 7.50 10.00 10.50 If the products are processed further, Alpha Co. will incur the following disposal costs upon sale: Bo, P3.00; Mo, P2.00; and Lo, P1.00. 6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to the nearest peso)? 8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo (round to the nearest peso)?
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