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Questions -
Q1. Love Co. manufactures products A and B from a joint process. Sales value at split-off was P700,000 for 10,000 units of A, and P300,000 for 15,000 units of B. Using the sales value at split-off approach, joint costs properly allocated to A were P140,000. Total joint costs were P?
Q2. Sun Co. produces three products from the same process that has joint processing costs of P4,100. Products RR, SS, and TT are produced in the following gallons per month, respectively: 250, 400, and 750. Sun also incurred advertising costs of P60,000; the ad was used to run sales for all three products. They occupy floor space in the following ratio: 5:4:9. (Round all answers to the nearest peso)
Using gallons as the physical measurement, what amount of joint processing cost is allocated to SS?
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