Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(4.) In Department 1, Capex Company produces 2 joint products R and E from a single input G. Each unit of G yields 2 units
(4.) In Department 1, Capex Company produces 2 joint products R and E from a single input G. Each unit of G yields 2 units of R and 1 unit of E, and product R must be processed further in department 2. From department 2, main product I and by-product N emerged in the ratio 3:1. I can be sold immediately but N is processed further in department 4. In department 3, each unit of E is processed into 1 unit of A and 1 unit of J. 200 units of G were processed during October. Fixed Cost Variable Cost Department 1 P20,000 P 50/unit of G Department 2 None 115/unit of R Department 3 P10,000 100/unit of E Department 4 None 10/unit of N Product I A J N Selling Price P250/unit 200/unit 300/unit 20/unit The estimated NRV of Nis treated as an addition to the sales value of 1.) Required: a. Find the unit cost of I, A, and J b. Assume that A can be processed further at an additional cost of P50/unit. Unit selling price can be increased to P240, should A be processed further? c. How many units of G must be processed to provide a total profit of P20,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started