Answered: Assuming that the company uses the net…

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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Manila Corporation, a manufacturing firm, has two joint products, Pure and Diluted. The Corporation records shoe that the joint production cost for the month of May 2020 amounted to P45,000. During the month, the further processing cost beyond the split-off point, needed to convert the product into … form, amounted to P240,000 for 2,400 units of Pure and P36,000 for 1,200 units of diluted. Pure sells P25 unit while Diluted sells for P50 per unit.

Assuming that the company uses the net realizable value method for allocating joint production cost. Its cost allocated to Pure for the month of May would be

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