FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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Transcribed Image Text: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
expand button
Transcribed Image Text: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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