NUBD Company produces four solvents from the same process: Alpha, Delta, Epsilon, and Gamma. Joint product costs are P9,000. (Round all answers to the nearest peso.) Disposal cost perbarrel at split-off P6.50 Final sales Sales price perbarrel at split-off P10.00 Further processing costs P2.00 2.50 4.00 Barrels 750 price perbarel P13.50 Alpha Delta E psilon Gamma 1,000 1,400 2,000 8.00 11.00 4.00 10.00 15.50 7.00 9.50 15.00 4.50 19.50 If NUBD sells the products after furth er processing, the following disposal costs will be incurred: Alpha, P2.50; Delta, P1.00; E psilon, P3.50; Gamma, P6.00.

NUBD Company produces four solvents from the same process: Alpha, Delta, Epsilon, and Gamma. Joint product costs are P9,000. (Round all answers to the nearest peso.) Disposal cost perbarrel at split-off P6.50 Final sales Sales price perbarrel at split-off P10.00 Further processing costs P2.00 2.50 4.00 Barrels 750 price perbarel P13.50 Alpha Delta E psilon Gamma 1,000 1,400 2,000 8.00 11.00 4.00 10.00 15.50 7.00 9.50 15.00 4.50 19.50 If NUBD sells the products after furth er processing, the following disposal costs will be incurred: Alpha, P2.50; Delta, P1.00; E psilon, P3.50; Gamma, P6.00.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using net…
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using the…
ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
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Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.) Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing cost Final sales price per barrel M1 750 P10.00 P6.50 P2.00 P13.50 M2 1,000 8.00 4.00 2.50 10.00 M3 1,400 11.00 7.00 4.00 15.50 M4 2,000 15.00 9.50 4.50 19.50 If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00. Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
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