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unit selling price for B after further processing ZLIF product B is processed beyond the split-off point, the chan in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease

unit selling price for B after further processing ZLIF product B is processed beyond the split-off point, the chan in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...
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The ABC Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total P90,000 per production run. The unit selling price for A is P4 and for B is P3.80 at the split-off point. However, B can be processed further at a total cost of P60,000 and then sold for P7.00 per unit. 6) In a decision between selling B at the split-off point or processing
Transcribed Image Text:The ABC Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total P90,000 per production run. The unit selling price for A is P4 and for B is P3.80 at the split-off point. However, B can be processed further at a total cost of P60,000 and then sold for P7.00 per unit. 6) In a decision between selling B at the split-off point or processing
C. the portion of the P90,000 joint production cost allocated to b. the P3.80 unit sales price of B at the split-off point a. the P60,000 cost to process B beyond the split-off point ZLIF product B is processed beyond the split-off point, the change B further, which of the following items is not relevant: a. the P60,000 cost to process B beyond the split-off pome b. the P3.80 unit sales price of B at the split-off point C. the portion of the P90,000 joint production cost allocated to d. the P7 unit selling price for B after further processing ZLIF product B is processed bevond the split-off point, the change in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease
Transcribed Image Text:C. the portion of the P90,000 joint production cost allocated to b. the P3.80 unit sales price of B at the split-off point a. the P60,000 cost to process B beyond the split-off point ZLIF product B is processed beyond the split-off point, the change B further, which of the following items is not relevant: a. the P60,000 cost to process B beyond the split-off pome b. the P3.80 unit sales price of B at the split-off point C. the portion of the P90,000 joint production cost allocated to d. the P7 unit selling price for B after further processing ZLIF product B is processed bevond the split-off point, the change in operating income from a production run (as compared to selling B at the split-off point) would be: a. P36,000 increase b. P96,000 increase C. P42,000 decrease d. P10,000 decrease
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