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Boysen Limited is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X.
Boysen Limited 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 June 2018 operations are presented below: In liters: Product Y Finished Goods inventory, June 1: 30,000 June Sales: 1,340,000 June Production: 1,600,000 In Peso: Product Y Further Processing cost : 1,400,000 Final Sales value per Liter: 10 Sales value per liter at split off: (?) Disposal Cost per liter: (?) In liters: Product Z Finished Goods inventory, June 1: 100,000 June Sales: 760,000 June Production: 800,000 In Peso: Product Z Further Processing cost : 1,520,000 Final Sales value per Liter: 14 Sales value per liter at split off: (?) Disposal Cost per liter: (?) In liters: By-Product X Finished Goods inventory, June 1: 40,000 June Sales: 240,000 June Production: 200,000 In Peso: By-Product X Further Processing cost : (?) Final Sales value per Liter: (?) Sales value per liter at split off: 2.40 Disposal Cost per liter: 0.40 Question/s: 1. What is the adjusted joint cost for allocation for June? 2. What is the allocation of joint cost for June for product Y? (round off to 2 decimal places) 3. What is the allocation of joint cost for June for product Z? (round off to 2 decimal places) 4. What is the by-product income
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