Reference no: EM132994972

Question - Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light beer, dark beer, and an impure byproduct. There were no beginning inventories or work-in-process in December. The production costs of Red Horse, Inc. for December are presented below:

Costs:

Materials acquired and placed in production P 5,000,000

Direct labor 2,000,000

Factory overhead 3,000,000

Production and sales information:

a. Light beer 300,000 cases produced; 80,000 cases sold at P 20 each.

b. Dark beer 240,000 cases produced; 120,000 cases sold at P 15 each.

c. Impure byproduct 120,000 cases produced and sold at P 15 each.

Find the portion of joint production costs assigned to dark beer based on the physical output?

a. P7,500,000

b. P3,750,000

c. P3,636,000

d. P1,818,000