Exercise 8-8. JOINT COST ALLOCATION & BYPRODUCT ALLOCATION – MARKET VALUE МЕТHOD The BAR Company manufactures joint products A and R as well as byproduct B. Cumulative cost data for the period show P204,000 representing 20,000 completed units processed through the Refining Department at an average cost of P10.20. Costs are assigned to A and R by the market value method which considers further processing costs in subsequent operations. To determine the cost allocation to B, the market value (reversal cost) method is used. Additional data: Quantity processed Sales price per unit Further processing cost per unit Selling and general expenses per unit Operating profit per unit REQUIRED: Cumulative cost allocated to B, A, and R B 2,000 P 5.00 1.00 1.00 1.00 R 10,000 P25.00 7.00 8,000 P20.00 5.00
Exercise 8-8. JOINT COST ALLOCATION & BYPRODUCT ALLOCATION – MARKET VALUE МЕТHOD The BAR Company manufactures joint products A and R as well as byproduct B. Cumulative cost data for the period show P204,000 representing 20,000 completed units processed through the Refining Department at an average cost of P10.20. Costs are assigned to A and R by the market value method which considers further processing costs in subsequent operations. To determine the cost allocation to B, the market value (reversal cost) method is used. Additional data: Quantity processed Sales price per unit Further processing cost per unit Selling and general expenses per unit Operating profit per unit REQUIRED: Cumulative cost allocated to B, A, and R B 2,000 P 5.00 1.00 1.00 1.00 R 10,000 P25.00 7.00 8,000 P20.00 5.00
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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