Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the following inventories: Alt Tab Del Units produced Selling price at split off P150 20,000 units 10,000 units 5,000 units P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of PO.80 and its cost of disposal is P0.20 per unit.
Silay Company is conducting a joint production at a total costs of P500,000. The joint production results to the following inventories: Alt Tab Del Units produced Selling price at split off P150 20,000 units 10,000 units 5,000 units P200 P5 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of PO.80 and its cost of disposal is P0.20 per unit.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 10PA: Clarion Industries produces two joint products, Y and Z. Prior to the split-off point, the company...
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Question
What is the value to be given to product Del?
A. P25,000
B. P21,000
C. P24,000
D. P20,000
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