Assuming the company adopts the net realizable value method of allocating joint cost , the production cost per unit of alpha 1 is:

YSABEL, the company's controller, wants to implement the market value method of joint cost allocation. She believes that inventoriable cost should be based on each product's ability to contribute to the recovery of joint production cost. The net realizable value of the by-product is a deduction from the joint cost. The joint cost of production amounts to P 4,640,000 for October 2018. Data describing operations during October 2018 follows: Main Product By-Product Alpha 1 Alpha 2 Alpha C FG Inventory in gallons Oct. 1,2016 20,000 40,000 10,000 October sales in gallons 800,000 700,000 200,000 October production in gallons 900,000 720,000 240,000 Sales value per gallon at split-off 20.00 15.00 5.50 Separable cost 3,600,000 1,440,000 Final sales value per gallon 50.00 40.00 Marketing costs of P.50 per gallon will be incurred to sell the by-product. YSABEL, the company's controller, wants to implement the market value method of joint cost allocation. She believes that inventoriable cost should be based on each product's ability to contribute to the recovery of joint production cost. The net realizable value of the by-product is a deduction from the joint cost. The joint cost of production amounts to P 4,640,000 for October 2018. Data describing operations during October 2018 follows: Main Product By-Product Alpha 1 Alpha 2 Alpha C FG Inventory in gallons Oct. 1,2016 20,000 40,000 10,000 October sales in gallons 800,000 700,000 200,000 October production in gallons 900,000 720,000 240,000 Sales value per gallon at split-off 20.00 15.00 5.50 Separable cost 3,600,000 1,440,000 Final sales value per gallon 50.00 40.00 Marketing costs of P.50 per gallon will be incurred to sell the by-product