BSA Company produced three joint products (Read, Study and Practice) and two by-products (Patience and Faith) at a joint cost of P250,000. 

Show your solution to compute the unit cost of joint products using (1) market value at split off method and (2) net realizable value method when joint production costs are allocated to patience and faith using (a) net realizable value method and (b) reversal cost method.

[FOR ANSWER]

1A

1B

2A

2B

 
 
 
 
 

Read Study Practice Patience Faith Units Produced 50,000 40,000 10,000 1,000 2,000 Sales Value at Split Off Point P16.80 P13.50 P12.00 P2.00 P1.00 Sales Value if processed further P21.52 P16.00 P15.60 75.00 P4.00 Further processing cost per unit 3.52 1.50 2.40 2.00 1.00 Selling and Admin. Expense per unit Operating profit per unit 3 3 3 1 1 3.520 1 1