Shack Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are P8,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard X 1,500 P6.00 P3.50 P1.00 P 7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Required: 1. Using a physical measure, what amount of joint processing cost is allocated to Product X (round to the nearest peso)? 2. Using a physical measure, what amount of joint processing cost is allocated to Product Z (round to the nearest peso)? 3. Using sales value at split-off, what amount of joint processing cost is allocated to Product X and Z (round to the nearest peso)?
Shack Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are P8,000.
|
|
Yards |
Sales price per yard at split-off |
Disposal cost per yard at split-off |
Further processing per yard |
Final sale price per yard |
|
X |
1,500 |
P6.00 |
P3.50 |
P1.00 |
P 7.50 |
|
Z |
2,200 |
9.00 |
5.00 |
3.00 |
11.25 |
If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Required:
1. Using a physical measure, what amount of joint
2. Using a physical measure, what amount of joint processing cost is allocated to Product Z (round to the nearest peso)?
3. Using sales value at split-off, what amount of joint processing cost is allocated to Product X and Z (round to the nearest peso)?
4. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product X and Z (round to the nearest peso)?
5. Which products would be processed further?
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