Honesty Manufacturing Company makes three products that can either be sold, or processed further and then sold.  The cost associated with the Bacolod joint process is P240,000.                            Units       SP at split off     Separable cost   Final SP 101                  15,000         P6.00                P2.00                   P8.50 202                  20,000           4.00                  1.00                     6.00 303                  25,000           4.00                  1.75                     5.50 Per unit, Product 101 weighs 3 ounces, Product 202 weighs 2 ounces, and Product 303 weighs 3 ounces.  Which of the products should be processed further

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
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Honesty Manufacturing Company makes three products that can either be sold, or processed further and then sold.  The cost associated with the Bacolod joint process is P240,000.

                           Units       SP at split off     Separable cost   Final SP

101                  15,000         P6.00                P2.00                   P8.50

202                  20,000           4.00                  1.00                     6.00

303                  25,000           4.00                  1.75                     5.50

Per unit, Product 101 weighs 3 ounces, Product 202 weighs 2 ounces, and Product 303 weighs 3 ounces.

 Which of the products should be processed further?

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