Reference no: EM133005090
Question - Q1. Comely Products manufactures products R, S and T in a joint process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S, and two kilos of T. During August, 50,000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P 200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional materials was done at the following costs:
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Further processing costs
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Selling price
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Product R
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P30,000
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P10.00
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Product S
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20,000
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12.00
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Product T
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30,000
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15.00
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What the unit cost of product R?
Assuming that all units are sold, what the gross margin on sales for product S?
If all units of Product T are sold, and selling and administrative expenses are 20% of sale, what the net income from sale of product T?
Q2. Lee Company produces two products in a single operation, Bex and Rom. Joint production costs for June 2016 were P30,000. During the month, further processing costs beyond the split-off point needed to convert the products into salable form were P 25,000 and P 35,000 for 1,600 units of Bex and 800 units of Rom, respectively. Bex sells for P 50 per unit and Rom sells for P 100 per unit. Lee uses the net realizable value for allocating joint costs. For June 2016, what the joint costs allocated to product Bex?
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What the joint costs allocated to product bex
: Lee Company produces two products in a single operation, Bex and Rom. Joint production costs for June 2016 were P30,000. What joint costs allocated to product
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