Reference no: EM133124596
Question - BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows:
Units produced (20,000; 30,000; 5,000 and 5,000);
Unit sold (18,000; 25,000; 5,000 and 5,000);
Final unit selling prices (25.00; P20.00; 2.00 and P1.50);
Further processing costs (P150,000; P210,000; P5,000 and P4,000);
Selling and Administrative expenses (P15,000; P21,000; P500 and P400);
Desired profit on C and D (P2,000 and P1,500).
If the entity uses average unit costs method in joint products and the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product A?
a. P11.50
b. P12.16
c. P12.21
d. P12.26
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