Using a physical measurement method, what amount of joint processing cost is allocated to Mo (round to the nearest peso)?Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to the nearest peso)?Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo (round to the nearest peso)? Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for thisproduction run are P2,100.BoMoLoPounds8001,1001,500Sales priceper lb. atsplit-offP6.508.258.00Disposalcost perlb. atsplit-offP 3.004.204.00Furtherprocessingper poundP2.003.003.50Finalsales priceper poundP 7.5010.0010.50If the products are processed further, Alpha Co. will incur the following disposal costs upon sale:Bo, P3.00; Mo, P2.00; and Lo, P1.00.6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo(round to the nearest peso)?7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round tothe nearest peso)?8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo(round to the nearest peso)?

Joint Cost - These are the cost incurred for number of products produced during a single…

Answered: Alpha Co. produces three products: Bo,…

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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Using a physical measurement method, what amount of joint processing cost is allocated to Mo
(round to the nearest peso)?
Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to
the nearest peso)?
Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo
(round to the nearest peso)?

Alpha Co. produces three products: Bo, Mo, and Lo from the same process. Joint costs for this
production run are P2,100.
Bo
Mo
Lo
Pounds
800
1,100
1,500
Sales price
per lb. at
split-off
P6.50
8.25
8.00
Disposal
cost per
lb. at
split-off
P 3.00
4.20
4.00
Further
processing
per pound
P2.00
3.00
3.50
Final
sales price
per pound
P 7.50
10.00
10.50
If the products are processed further, Alpha Co. will incur the following disposal costs upon sale:
Bo, P3.00; Mo, P2.00; and Lo, P1.00.
6. Using a physical measurement method, what amount of joint processing cost is allocated to Mo
(round to the nearest peso)?
7. Using sales value at split-off, what amount of joint processing cost is allocated to Mo (round to
the nearest peso)?
8. Using net realizable value at split-off, what amount of joint processing cost is allocated to Bo
(round to the nearest peso)?

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