Silicon Valley Corporation (SVC), which produces keyboards for personal computers. We assume the following information for SVC for the month of April.

• There are no beginning inventories of direct materials. Moreover, there is zero beginning and ending work in the process.
• SVC has only one direct manufacturing cost strategy (direct materials) and one indirect manufacturing cost category (conversion costs). All manufacturing labor costs are included in conversion costs.
• From its bill of materials and an operations list, SVC determines that direct material cost per keyboard unit is P20 and the estimated conversion cost is P10.
• SVC purchases P1,880,000 of direct materials. Actual conversion costs equal P1,280,000. SVC produces 90,000 good keyboard units and sells 87,000 units.
• Any under-allocated or over-allocated conversion costs are written off to the Cost of goods sold at the end of the month.

Ready the following (any item may be asked on the online exam i.e. debits and credit of a particular entry)

1. Journal Entries if:
   1. Trigger points – Purchase, completion, sale
   2. Purchase, Sale
   3. Completion and sale
2. Provide a General Ledger Overview for each
3. Find the following for each
   1. COGS
   2. RIP end
   3. FG end
   4. Backflushed amount

JOINT AND BY-PRODUCT

Maroon Ltd is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X. The company uses the net realizable value of its joint products to allocate joint production costs. The by-product is valued for inventory purposes at its market value less its disposal cost, and this value is used to reduce the joint production cost of P2,015,000. Information regarding the company’s August 2020 operations are presented below:

In liters	Y	Z	X
Finished Goods inventory, August 1	30,000	100,000	40,000
August Sales	1,340,000	760,000	240,000
August Production	1,600,000	800,000	200,000
In Peso
Further Processing cost	1,400,000	1,520,000
Final Sales value per Liter	10	14
Sales value per liter at split-off			2.40
Disposal Cost per liter			0.40

Required:

1. Calculate the by-product income
2. Calculate the adjusted joint cost for allocation for August
3. Calculate the allocation of joint cost for August for products Y and Z
4. Calculate the unit cost per product and value of closing inventory
5. The company has an opportunity to sell product Z at a split-off for P10 per liter. Prepare an analysis to show whether Z should be sold at the split-off point or further processing.
6. Split your joint costs between join products using the physical unit method.