Luzon Manufacturing Corp. manufactures two products from a joint distilling process. The two products developed are Light Brandy and Primera Brandy. A standard production run incurs costs of P3,000,000 and results in 6,000 units of Light Brandy and 9,000 units of Primera Brandy. Each Light Brandy sells for P200 per unit, and each Primera Brandy sells for P400 per unit. Assuming no further processing work is done after the split-off point, the amount of joint cost allocated to Primera Brandy on a physical quantity allocation basis would be?
Luzon Manufacturing Corp. manufactures two products from a joint distilling process. The two products developed are Light Brandy and Primera Brandy. A standard production run incurs costs of P3,000,000 and results in 6,000 units of Light Brandy and 9,000 units of Primera Brandy. Each Light Brandy sells for P200 per unit, and each Primera Brandy sells for P400 per unit. Assuming no further processing work is done after the split-off point, the amount of joint cost allocated to Primera Brandy on a physical quantity allocation basis would be?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...
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Luzon Manufacturing Corp. manufactures two products from a joint distilling process. The two products developed are Light Brandy and Primera Brandy. A standard production run incurs costs of P3,000,000 and results in 6,000 units of Light Brandy and 9,000 units of Primera Brandy. Each Light Brandy sells for P200 per unit, and each Primera Brandy sells for P400 per unit.
Assuming no further processing work is done after the split-off point, the amount of joint cost allocated to Primera Brandy on a physical quantity allocation basis would be?
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