Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the Following inventories: Del Alt Tab Units produced 20,000 units 10,000 units 5,000 units Selling price at split off P150 P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P0.80 and its cost of disposal is P0.20 per unit. Answer the following with complete solution: 1. What is the value to be given to product Del? 2. What is the joint cost allocated to product Alt if the entity employs physical method? 3. What is the joint cost allocated to product Tab if the entity employs relative sales value method?

Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the Following inventories: Del Alt Tab Units produced 20,000 units 10,000 units 5,000 units Selling price at split off P150 P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P0.80 and its cost of disposal is P0.20 per unit. Answer the following with complete solution: 1. What is the value to be given to product Del? 2. What is the joint cost allocated to product Alt if the entity employs physical method? 3. What is the joint cost allocated to product Tab if the entity employs relative sales value method?

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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