The ABC Company makes products A and B in a joint process from asingle input, R. During a typical production run, 50,000 units of Ryield 20,000 units of A and 30,000 units of B at the split-off point.Joint production costs total P90,000 per production run. The unitselling price for A is P4 and for B is P3.80 at the split-off point.However, B can be processed further at a total cost of P60,000 andthen sold for P7.00 per unit.6) In a decision between selling B at the split-off point or processing C. the portion of the P90,000 joint production cost allocated tob. the P3.80 unit sales price of B at the split-off pointa. the P60,000 cost to process B beyond the split-off pointZLIF product B is processed beyond the split-off point, the changeB further, which of the following items is not relevant:a. the P60,000 cost to process B beyond the split-off pomeb. the P3.80 unit sales price of B at the split-off pointC. the portion of the P90,000 joint production cost allocated tod. the P7 unit selling price for B after further processingZLIF product B is processed bevond the split-off point, the changein operating income from a production run (as compared toselling B at the split-off point) would be:a. P36,000 increaseb. P96,000 increaseC. P42,000 decreased. P10,000 decrease

(6) The Correct Option is Option (c) i.e. The Portion of the P90,000 Joint Production Cost allocated…

unit selling price for B after further processing ZLIF product B is processed beyond the split-off point, the chan in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease

unit selling price for B after further processing ZLIF product B is processed beyond the split-off point, the chan in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

The ABC Company makes products A and B in a joint process from a
single input, R. During a typical production run, 50,000 units of R
yield 20,000 units of A and 30,000 units of B at the split-off point.
Joint production costs total P90,000 per production run. The unit
selling price for A is P4 and for B is P3.80 at the split-off point.
However, B can be processed further at a total cost of P60,000 and
then sold for P7.00 per unit.
6) In a decision between selling B at the split-off point or processing

C. the portion of the P90,000 joint production cost allocated to
b. the P3.80 unit sales price of B at the split-off point
a. the P60,000 cost to process B beyond the split-off point
ZLIF product B is processed beyond the split-off point, the change
B further, which of the following items is not relevant:
a. the P60,000 cost to process B beyond the split-off pome
b. the P3.80 unit sales price of B at the split-off point
C. the portion of the P90,000 joint production cost allocated to
d. the P7 unit selling price for B after further processing
ZLIF product B is processed bevond the split-off point, the change
in operating income from a production run (as compared to
selling B at the split-off point) would be:
a. P36,000 increase
b. P96,000 increase
C. P42,000 decrease
d. P10,000 decrease

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