Reference no: EM133174568
Question 1 - Staley Communications is a sports band network and television company with three service groups: Games, News and Documentaries. In May, the company incurred P12,000,000 of joint product cost for facilities and administration. Revenues and separate production costs of each group for May follow:
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Games
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News
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Documentaries
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Revenue
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P18,000,000
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P15,000,000
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P95,000,000
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Separate Costs
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P17,000,000
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P8,000,000
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P55,000,000
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Required -
(1) Compute the Allocated the Joint cost using Net Reliazable Value approach
(2) Compute the Allocate joint cost based on Revenues.
Question 2 - Sue Bird Products has a joint process that makes three products from honey for institutional customers. Joint cost for the process is P60,000.
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Product
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Units of Output
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SP @SOP
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Incremental cost
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Final SP
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Honey Butter
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5,000
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P2.00
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P1.50
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P3.00
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Honey Jam
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10,000
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P1.00
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P2.00
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P6.00
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Honey Syrup
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500
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P1.50
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P0.20
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P1.80
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A container of honey butter, jam and syrup includes, respectively, 10 pounds, 6 pounds and 2 pounds of product.
Required - Determine which products should be processed beyond the SOP.
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Determine the expected net present value of the potential
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