Question
Luzon Manufacturing Corp. manufactures two products from a joint distilling process. The two products developed are Light Brandy and Primera Brandy. A standard production run
Luzon Manufacturing Corp. manufactures two products from a joint distilling process. The two products developed are Light Brandy and Primera Brandy. A standard production run incurs costs of P3,000,000 and results in 6,000 units of Light Brandy and 9,000 units of Primera Brandy. Each Light Brandy sells for P200 per unit, and each Primera Brandy sells for P400 per unit. Assuming no further processing work is done after the split-off point, the amount of joint cost allocated to Light Brandy on a relative sales value basis would be?
P750,000
P1,800,000
P2,250,000
P1,200,000
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