Reference no: EM132561322

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

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