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MIX Inc. is conducting a joint process with results to three products. The following production data were provided by MIX Inc. for the current period:
Product name Units produced Selling price produced at split off point
Ace 10,000 40
Bat 15,000 20
Can 25,000 12
Additional data for the period provided:
All the Ace items were sold for a gross profit of P100,000
The total cost is allocated using physical method
Question 1: What is the gross profit/(loss) if all the Bat items are sold in the current year?
Option 1: 200,000
Option 2: (150,000)
Option 3: (100,000)
Option 4: 50,000
Question 2: Assuming the joint costs are fixed, what is the joint cost allocated a Can items using the revenue sales value method?
Option 1: 250,000
Option 2: 450,000
Option 3: 750,000
Option 4: 300,000
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