Reference no: EM132809548

Maroon Ltd is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X. The company uses the net realizable value of its joint products to allocate joint production costs. The by-product is valued for inventory purposes at its market value less its disposal cost, and this value is used to reduce the joint production cost of P2,015,000.

Information regarding the company's August 2020 operations are presented below:

In liters                                                               Y                       Z                     X
Finished Goods inventory, August 1            30,000         100,000          40,000
August Sales                                       1,340,000          760,000       240,000
August Production                                 1, 600,000            800,000    200,000

In Peso

Further Processing cost 1,400,000 1,520,000
Final Sales value per Liter 10 14
Sales value per liter at split off 2.40
Disposal Cost per liter 0.40

Problem 1: Calculate the by-product income

Problem 2: Calculate the allocation of joint cost for August for product Y

Problem 3: Calculate the adjusted joint cost for allocation for August

Problem 4: Calculate the unit cost of ending inventory of Product Y

Problem 5: Calculate the allocation of joint cost for August for product Z

Problem 6: Calculate the unit cost of ending inventory of Product Z