Reference no: EM133004198
Question - Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light beer, dark beer, and an impure by product. There were no beginning inventories or work-in-process in December. The production costs of Red Horse, Inc. for December are presented below:
Costs: Materials acquired and placed in production P5,000,000
Direct labor 2,000,000
Factory overhead 3,000,000
Production and sales information:
a. Light beer 300,000 cases produced; 80,000 cases sold at P 20 each.
b. Dark beer 240,000 cases produced; 120,000 cases sold at P 15 each.
c. Impure byproduct 120,000 cases produced and sold at P 15 each.
Required - What the portion of joint production costs assigned to dark beer based on the physical output?
a. P7,500,000
b. P3,750,000
c. P3,636,000
d. P1,818,000