1. Talisay Company is conducting a joint production at a total costs of P1,000,000. The joint production results to the following inventories:

	Alt	Tab	Del
Units produced	20,000 units	10,000 units	5,000 units
Selling price at split off	P300	P400	P10

 

Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P1.6 and its cost of disposal is P0.40 per unit.

1. What is the joint cost allocated to product Tab if the entity employs relative sales value method?

 

2. If the under or over applied factory overhead is insignificant, it shall be closed to

Group of answer choices

A. Work in process, finished goods and cost of goods proportionately.

B. Finished goods and cost of goods sold proportionately

C. Raw materials, work in process, finished goods, and cost of goods sold proportionately

D. Cost of goods sold only