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Nangangamatis Inc. manufactures tomato products such as tomato juice, tomato paste, tomato sauce and also sells tomato peels and seeds (P&S) as a by-product. Nangangamatis

Nangangamatis Inc. manufactures tomato products such as tomato juice, tomato paste, tomato sauce and also sells tomato peels and seeds (P&S) as a by-product. Nangangamatis uses actual costing and the weighted average cost flow assumption. Production process begins in Department 1 wherein the tomato juice, sauce, and paste are manufactured in approximate proportions of 20%, 30%, and 50%, respectively. All three products are readily saleable at split-off point; however, management opts to process tomato sauce in Department 2, wherein further processing creates a residue mixture of P&S. Tomato paste may also be further processed in Department 3 if incremental profit can be obtained. The following is an excerpt from Department 1's current period cost of production report: DM DL OH Units accounted for Comp & trans out 250,000.00 100% 100% 100% Normal spoilage 20,000.00 100% 50% 50% WIP end - Total 270,000.00 Cost per EUP 7.50 5.00 12.00 Department 1 % of completion Additional marketing, distribution, and processing costs of Php0.75 per unit are necessary for P&S. The following is an excerpt from Department 2's current period cost of production report: DM DL OH Units* to account for WIP beginning 15,000.00 100% 20% 20% Transferred in this period 75,000.00 Total 90,000.00 Units* accounted for Comp & trans out 70,000.00 100% 100% 100% Normal spoilage 15,000.00 100% 60% 60% Abnormal spoilage 5,000.00 100% 60% 60% Total 90,000.00 Total costs to account for 2,057,000.00 540,000.00 697,000.00 820,000.00 Less: P&S NRV (Php2/unit) (120,000.00) Department 2 % of completion *Liters of tomato sauce. By-product units are not accounted for in CPR. In the previous period, Department 3 manufactured 80,000 units of refined tomato paste at the following costs: Trans-in - Php1,879,000; DM - Php1,372,000; DL - Php343,000; OH - Php1,029,000. Total costs accounted for in Department 3 amounted to Php4,623,000. Cost-output relationships are expected to stay at the same level. Tomato juice can be sold for Php54.50 per unit. Basic tomato sauce can be sold for Php43 per unit while refined tomato sauce sells for Php90 per unit. Basic tomato paste can be sold for Php37 per unit while refined tomato paste sells for Php68.50 per unit. REQUIRED: Prepare joint cost allocations based on 1) physical units, 2) sales value at split-off, 3) approximate NRV at split-off, 4) constant gross-margin % NRV

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