Reference no: EM132758372

Atlas Foods produces three supplemental food products simultaneously through a refining process costing P93,000. The joint products, Alfa and Betters, have a final selling price of P4 per pound and P10 per pound, respectively, after additional processing costs of P2 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split-off point for P3 per pound.

Additional information are as follows:

Alfa - 10,000 pounds of Alfa, a popular but relatively rare grain supplement of having a caloric value of 4,400 calories/pound.

Betters - 5,000 pounds of Betters, a flavouring material high in carbohydrates with a caloric value of 11,200 calories/pound.

Morefeed - 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories/pound.

Questions:

Problem 1. Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using the NRV method is?

Problem 2. Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using physical quantity method (pounds) is?

Problem 3. Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Betters, using caloric value per pound is?

Problem 4. Assuming Atlas Food does not adjust the joint cost for the value of Morefeed, the by-product, the joint cost to be allocated to Betters, using the NRV method is?