Reference no: EM132791407
Gable company produces two main product jointly, A and B, and C, Which is by-product of B. A and B are produced from the same raw materials, C is manufactured from the residue of the process creating B.
Costs before separation are apportioned between the two main products by the net realizable value method. The net revenue realized from the sale of c is the deducted from the cost of B. Data for April were as follows:
Costs before separation P200,000
Costs After separation:
A. 50,000
B. 32,000
C. 4,000
Production for April, in pounds:
A. 800,000
B. 200,000
C. 20,000
Sales in for April :
A. 640,000 pounds @ P.4375
B. 180,000 pounds @ .65
C. 20,000 pounds @ .30
Required:
Problem 1: Determine the gross profit for april
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