BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs (P150,000: P210.000; PS,000 and P4.000); Selling and Administrative expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1.500). If the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product B? O P10.42 P10 P10.49 O P11.00 BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20.000; 30.000; 5,000 and 5,000): Unit sold (18,000; 25.000: 5.000 and 5.000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000; P210.000; P5,000 and P4,000): Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1,500). If the entity uses average unit costs method in joint products and the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product A?" P11.50 P12.16 P12.21 P12.26

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
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BSBA Company produced two joint products A and B, and by-products C
and D from the same raw materials with joint costs P200,000. The entity
uses net realizable value in allocating joint costs to joint products. Other
information are as follows: Units produced (20,000; 30,000; 5,000 and
5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling
prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs
(P150,000: P210.000; PS,000 and P4.000); Selling and Administrative
expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D
(P2.000 and P1.500). If the net proceeds of sale of by-products are
presented as additional revenue of the main products, what is the total
unit cost of Product B?
O P10.42
P10
P10.49
O P11.00
BSBA Company produced two joint products A and B, and by-products C
and D from the same raw materials with joint costs P200,000. Other
information are as follows: Units produced (20.000; 30.000; 5,000 and
5,000): Unit sold (18,000; 25.000: 5.000 and 5.000): Final unit selling
prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs
(P150,000; P210.000; P5,000 and P4,000): Selling and Administrative
expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D
(P2.000 and P1,500). If the entity uses average unit costs method in joint
products and the net proceeds of sale of by-products are presented as
additional revenue of the main products, what is the total unit cost of
Product A?"
P11.50
P12.16
P12.21
P12.26
Transcribed Image Text:BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs (P150,000: P210.000; PS,000 and P4.000); Selling and Administrative expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1.500). If the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product B? O P10.42 P10 P10.49 O P11.00 BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20.000; 30.000; 5,000 and 5,000): Unit sold (18,000; 25.000: 5.000 and 5.000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000; P210.000; P5,000 and P4,000): Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1,500). If the entity uses average unit costs method in joint products and the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product A?" P11.50 P12.16 P12.21 P12.26
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