equipment costing P15,400 per quarter. Additional materials and labor also process Alpha further means that the company must rent some special Problem 17, page 323C- SHE Inc. (Sell or Process Further) Requirement: What is the effect of the process-further decision on the quarterly operating profit? Problem 17 (Sell or Process Further; Basic Analysis) SHE, Ic., produces three products (Alpha, Beta, and Gamma) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead P500,000 36,000 72,000 The revenues from each product are as follows: Alpha, P100,000; Bela, P93,000; and Gamma, P30,000. Management is considering processing Alpha beyond the split-off poin. which would increase the sales values of Alpha to P120,000. However. needed would cost P8,500 per quarter. SOLUTION & ANSWER:

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· equipment costing P15,400 per quarter. Additional materials and. labor also
process Alpha further means that the company must rent some special
Problem 17, page 323C- SHE Inc. (Sell or Process Further)
Requirement: What is the effect of the process-further decision on the quarterly operating
profit?
Problem 17 (Sell or Process Further; Basic Analysis)
SHE, Inc., produces three products (Alpha, Beta, and Gamma) from a
common input. The joint costs for a typical quarter follow:
Direct materials
Direct labor
Overhead
P500,000
36,000
72,000
The revenues from each product are as follows: Alpha, P100,000; Betn,
P93,000; and Gamma, P30,000.
Management is considering processing Alpha beyond the split-off point,
Which would increase the sales values of Alpha to P120,000: However, to
needed would cost P8,500 per quarter.
SOLUTION & ANSWER:
Transcribed Image Text:· equipment costing P15,400 per quarter. Additional materials and. labor also process Alpha further means that the company must rent some special Problem 17, page 323C- SHE Inc. (Sell or Process Further) Requirement: What is the effect of the process-further decision on the quarterly operating profit? Problem 17 (Sell or Process Further; Basic Analysis) SHE, Inc., produces three products (Alpha, Beta, and Gamma) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead P500,000 36,000 72,000 The revenues from each product are as follows: Alpha, P100,000; Betn, P93,000; and Gamma, P30,000. Management is considering processing Alpha beyond the split-off point, Which would increase the sales values of Alpha to P120,000: However, to needed would cost P8,500 per quarter. SOLUTION & ANSWER:
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