Reference no: EM133022353
Question - Darvin Corporation manufactures joint products X and Y as well as by-product A. Cumulative joint cost data for the period show P204,000, representing 20,000 completed units processed through the Refining Department. Costs are assigned to X and Y by the market value method, which considers further processing costs in subsequent operations. To determine the cost allocation to A, the market value (reversal cost) method is used. Additional data:
A X Y
Quantity processed 2,000 8,000 10,000
Sales price per unit P6.00 P20.00 P25.00
Further processing cost per unit 2.00 5.00 7.00
Marketing & Adm. Expense per unit 1.00
Desired profit per unit 1.00
Required -
1. Compute the joint cost allocated to A.
2. Allocate the remaining joint cost to X and Y.