Hi I need help on what is the answer for this process costing accounting for numbers 4, 5 and 6. Numbers 1-3 are answered already and you can use this as a reference also . Answer with explanation is highly appreciated. I hope that you can help me

Problem

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 split off for P10 per liter. Prepare an analysis to show whether Z should be sold at split off point or further processing 6) Split your joint costs between join products using physical unit method.1) 0 2} 1,615,000 3) Product Y = 9T1,128.50 ; Product Z = 643,8?'150 Explanation: First let's gure out how we will account for the byproduct X. As said in the problemI X is valued at Market Value less Disposal Cost {MV less DC or NFtV} tor inventory purposes. What does it mean when the byproduct is accounted that way? It means that the NRV ot the byproduct is signicant, and if it is significant. the NR'l.Ir of the product is used to reduce the joint cost that will be allocated to the joint products. It the NF\"! is insignicant, it will not be inventoried and its NRV will not be used to reduced the joint cost (because it does not have a share in the joint cost) and it will only be accounted m sold as other income. Onl\\_.ur those significant products will be allocated ajointcost. Of course, the jointproducts Y and Z are significant. that is whyr we allocate joint cost to the joint products. But it byproduct is is also significant, it will have a share in the joint cost, which is equal to its NRV. Now that we established that the byproduct is significant, and its NFtV will reduce jointcost. we need to calculate the NRV of X. S'v' at split off 2.4 Disposal Cost ICE}, NFW per liter 2 per liter Production ,@ NFtV 400,000 This NFW is the joint cost allocated to X, because it was said in the problem that this amount will reduce the jointcost. therefore, its share in the jointcost is this amount. Thus. to answer number 1. is this amount. Thus, to answer number 1. NFIV 400.000 Share in .10 (mg001 Net Income 0 You might be asking, what happens to the beginning inventory of byprod uct X of 40,000. The cost of this inventory is 40,000 x 2 = 80,000. This NRU of 80,000 was already used to deduct the-joint cost ofpn'or production. It's just that we still haven 't sold it at the start of August. If you look at the table, we have sold this 40,000 liters during August, but this would not have any effect on our income because: NFI'I:Ir of beg inventory 80,000 Share in .10 (prior production)_(8_0,l}_ Effect in Income 0 So it doesn't matter when we are able to sell the byproduct if it is signicant, because it does not have effect on our income since we use its NHV to deduct the joint cost. In #2 we are asked how much is the joint cost left to be allocated: Joint Cost 2,015 .000 NFI'I:Ir of X [40_0,)1 Joint Cost to be allocated 1,615,000 In #3, we will now allocate the 1,615,000 to products Y and Z using also their NFtV. n #3, we will now allocate the 1.615.000 to products Y and Z using also their NFlV. So rst. you need to get their Final Sales Value. Simply multiply the unit production to its final 81! per liter. PRODUCTS Production Final Sales Value per lite r Sales Value Y 1,600,000.00 10.00 16.000,000.00 Z 80 0,000.00 14.00 11.200.000.00 \\low that we have our SV we need to deduct from it the costs incurred after the split-off to get the NFiV. PRODUCTS Sales Value Further Processing Cost Net Realizable Value Y 16.000,000.00 1.40000 0.00 14.600.000.00 Z 11,200.00 0.00 1,520.00 0.00 9.680.000.00 Total 24,280,00000 To allocate (NOTE: YOU CAN USE PERCENTAGE BY USING NEW BUT YOU WOULD HAVE TO ROUND OFF; DIFFERENCE WILL BE DUE TO THE ROUNDING OFF) Allocation, without rounding otl: Product Y = (14.600l24,280) x 1.615.000 = 9?1,128.50 Product 2 = [9.680/24280} x1,615,000 = 643,871.50 PRODUCTS Sales Value Further Processing Cost Net Realizable Value Y 16,000,00000 1,400,000.00 1450000000 2 11,200,00000 1,520,000.00 9,680,000.00 Total 24,280,00000 To allocate l(NOTE: YOU CAN USE PERCENTAGE BY USING NEW BUT YOU WOULD HAVE TO ROUND OFF; DIFFERENCE WILL BE DUE TO THE ROUNDING OFF] Allocation, without rounding oft: Product Y = (14,600/24,280)x1.615.000 = 911128.50 F'roduct Z = [9,680/24280} x1,615,000 = 643,871.50 You may also be wondering, what happened to the beginning inventory of our joint products Y and 2. Well, they have their own inventory cost that you can compute it we have data for prior productions. But basically, you just have to follow the principles of accounting for inventory. But for this August production , the cost of our 1,600,00 liters of X and 800.000 liters of Z are their respective allocated joint cost plus their respective further processing cost. If you have questions, please comment below. Have a nice day