1. Mel Corporation manufactures liquid chemicals X and Y from a joint process. Joint costs are allocated...
Question:
1. Mel Corporation manufactures liquid chemicals X and Y from a joint process. Joint
costs are allocated on the basis of relative market value at split-off. It costs Php5,000
to process 500 gallons of Product X and 1,000 gallons of Product Y to the split-off
point. The market value at split-off is Php10 per gallon for Product X and Php15 for
Product Y. Product Y requires an additional process beyond split-off at a cost of Php5
per gallon before it can be sold. What is Mel's cost to produce 1,000 gallons of
Product Y? (5 points)
2. Happy Corp. manufactures Products A, B, C, and D from a joint process. Additional
information is as follows:
Market If Processed Further
Units Value at Additional Market
Product Produced Split-Off Costs Value
A 6,000Php 80,000Php 7,500Php 90,000
B 5,000 60,000 6,000 70,000
C 4,000 40,000 4,000 50,000
D 3,000 20,000 2,500 30,000
18,000Php 200,000Php 20,000Php 240,000
Assuming that total joint costs of Php160,000 were allocated using the market
value at split-off approach, what joint costs were allocated to each product?
(10 points)
3. Best Co. manufactures Products A and B from a joint process. Market value at splitoff was Php 600,000 for 10,000 units of A, and Php200,000 for 15,000 units of B.
Using the market value at split-off approach, joint costs properly allocated to A were
Php140,000. Compute for the total joint costs of Best Company. (5 points)
4. The Coco Corporation manufactures two products out of a joint processX and Y.
The joint (common) costs incurred are Php250,000 for a standard production run that generates 120,000 gallons of X and 80,000 gallons of Y. X sells for Php2.00 per gallon, while Y sells for Php3.25 per gallon. If there are no additional processing costs incurred after the split-off point, what is the amount of joint cost of each production run allocated to Product X? (5 points)
Expert Answer:
1 To calculate Mel Corporations cost to produce 1000 gallons of Product Y we need to consider the joint costs incurred up to the splitoff point and the additional process cost for Product Y Given info... View the full answer
