Reference no: EM133008992

Questions -

Q1. Lego Plastics, Inc, has two joint products, ABBA and ADDA, and uses the net realizable value method of allocating joint costs. The total joint costs for the year 2000 amounted to P 300,000. During the year, additional processing costs after split-off were P 160,000 for ABBA and P 240,000 for ADDA. Lego produced 16,000 units of ABBA and 8,000 units of ADDA during the year. The selling price for ABBA is P 20.00 and for ADDA is P 50.00. What the portion of joint costs allocated to ADDA during the year?

Q2. Janice Corporation processes direct materials up to the split-off point, where products R and S are produced and thereafter sold. For the month just ended, the following information were made available Direct materials, 20,000 gallons (yield - 19,000 gallons of good product and 1,000 gallons of shrinkage)

Production: R, 10,000 gallons; S, 9,000 gallons;

Unit selling price: R, P 1,500 per gallon; S, P 1,000 per gallon;

The cost of buying 20,000 gallons of direct materials and processing up to split-off point to yield a total of 19,000 gallons of good products was P 19,500,000. The beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending inventories amounts reflected 600 gallons for R and 1,050 gallons for S.

Using the volume of production as the basis for allocating joint costs, the assigned costs to R and S would be?