Kamagong Inc. produces two joint products, PEI and VEL. The joint production costs for

March 2013 were P15,000. During March 2013, further processing costs beyond the

split-off point, needed to convert the products into salable form were P8,000 and

P12,000 for 800 units of PL and 400 units VEL, respectively. PEL sells for P25 per unit and

VEL sells for P50 per unit. Assuming that Kamagong uses the net realizable value

method for allocating joint product costs, what were the joint costs all allocated to

product PEL for March 2013?

a. P5,000

b. 6,000

c. 9,000

d. 10,000