Solution-What is the gross profit of ALT for the year

What is the gross profit of ALT for the year

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Reference no: EM132758310

Question - CONSO Inc. manufactures joint products ALT and TAB, and a by-product DEL. Costs are assigned to the joint products by the net realizable value or final market value method which considers further processing costs in subsequent operations. It is the policy of CONSO Inc. to account for its by-product by market value or reversal cost method or deduction of net realizable value of by-product from the joint manufacturing costs of main products. The total manufacturing costs for 100,000 units were P1,520,000 during the year. Production and costs data follow:

	ALT	TAB	DEL
Units produced	60,000	30,000	10,000
Sales price per unit	P70	P25	P10
Further processing cost per unit	20	5	3
Selling and admin expense per unit			5

Required -

1. What is the value of DEL to be deducted from the joint manufacturing costs?

2. What is the gross profit of ALT for the year?

3. What is the gross profit of TAB for the yea?

Reference no: EM132758310

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What is the gross profit of ALT for the year

Reference no: EM132758310

Reference no: EM132758310

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