Homework Help is Here – Start Your Trial Now!
Business
Accounting
A chemical company which uses a joint process manufactures products 0,P and M, which are all derived from one input. The company allocates joint costs to the products in proportion to the relative physical volume of output. The company may either sell the products at the point of split-off or process further in order to maximize profits. The following data were obtained for February (SEE PICTURE BELOW): Joint production costs were P15,000. Additional processing on products O and P were performed, while product M was sold at the point of split-off. The gross profit of the company derived from the production process for the month of February was: * No. of units Sales produced If process further price/unit at sales price Additional per unit P 5.00 P 4.00 Р3.75 split-off P 4.00 P 2.25 P 3.00 cost per unit P0.80 2,000 P 3,000 1,500 P 1.50 P0.90 M а. Р 4,250 O b. P 5,175 D C.P 5,400 D d. P 6,525

A chemical company which uses a joint process manufactures products 0,P and M, which are all derived from one input. The company allocates joint costs to the products in proportion to the relative physical volume of output. The company may either sell the products at the point of split-off or process further in order to maximize profits. The following data were obtained for February (SEE PICTURE BELOW): Joint production costs were P15,000. Additional processing on products O and P were performed, while product M was sold at the point of split-off. The gross profit of the company derived from the production process for the month of February was: * No. of units Sales produced If process further price/unit at sales price Additional per unit P 5.00 P 4.00 Р3.75 split-off P 4.00 P 2.25 P 3.00 cost per unit P0.80 2,000 P 3,000 1,500 P 1.50 P0.90 M а. Р 4,250 O b. P 5,175 D C.P 5,400 D d. P 6,525

Principles of Cost Accounting
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 12E: Adirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are...
See similar textbooks
icon
Related questions
Question

QUESTION 16

Cost Accounting
Choose the answer from the choices

A chemical company which uses a joint process manufactures products 0,P and M, which are all derived from one input. The company allocates joint costs to the products in proportion to the relative physical volume of output. The company may either sell the products at the point of split-off or process further in order to maximize profits. The following data were obtained for February (SEE PICTURE BELOW): Joint production costs were P15,000. Additional processing on products O and P were performed, while product M was sold at the point of split-off. The gross profit of the company derived from the production process for the month of February was: * O No. of units Sales produced If process further price/unit at Sales price Additional per unit P 5.00 P 4.00 Р 3.75 split-off P 4.00 P 2.25 Р 3.00 cost per unit P0.80 2,000 P P 1.50 3,000 1,500 M P0.90 О а.Р4,250 O b. P 5,175 O C.P 5,400 O d. P 6,525
Transcribed Image Text:A chemical company which uses a joint process manufactures products 0,P and M, which are all derived from one input. The company allocates joint costs to the products in proportion to the relative physical volume of output. The company may either sell the products at the point of split-off or process further in order to maximize profits. The following data were obtained for February (SEE PICTURE BELOW): Joint production costs were P15,000. Additional processing on products O and P were performed, while product M was sold at the point of split-off. The gross profit of the company derived from the production process for the month of February was: * O No. of units Sales produced If process further price/unit at Sales price Additional per unit P 5.00 P 4.00 Р 3.75 split-off P 4.00 P 2.25 Р 3.00 cost per unit P0.80 2,000 P P 1.50 3,000 1,500 M P0.90 О а.Р4,250 O b. P 5,175 O C.P 5,400 O d. P 6,525
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Principles
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS