Question
Cola Bottling Company is a manufacturer of bulk soft-drink. A single production process yields two bulk soft drinks. Coke (the main product) and Pepsi
Cola Bottling Company is a manufacturer of bulk soft-drink. A single production process yields two bulk soft drinks. Coke (the main product) and Pepsi (the by-product). Both products are fully processed at the split-off point and there are no separable costs. For May 2020, the cost of the soft-drink operations is P1,200,000. Production and sales data are as follows: Production (in Gallons) Sales (in Gallons) Selling Price (per Gallon) Main product: 10,000 8,000 P200 Coke By-product: Pepsi 2,000 1,400 P20 There were no beginning inventories on May 1, 2020.
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