Problem 2. Lucky Company produces two rice-based instant noodles-Lucky Him (tiny noodles) and Lucky Her (large noodles) from common inputs, flour and spices. A waste product results from the joint process which is sold to cattle ranchers at P10 per ton. The revenue from the sale of by-product is treated as other sales revenue. At split off point, the main products can be sold to companies who package and sell them under their own branch names. With the rising popularity of noodles as a meal, Lucky Company add bits of preprocessed vegetables to Lucky Him and Lucky Her, package them, and sell them under the brand names Nissins and Ramens. Joint Costs Lucky Him Lucky Her Costs of flour and spices P1,200,000 Production in tons 5,000 tons of BP 50,000 100,000 Sales in tons 50,000 100,000 Selling price per ton P20 P30 P240,000 Separable costs of processing 50,000 tons of Lucky Him into 60,000 tons of Nissins Separable costs of processing 100,000 tons of Lucky Her into 120,000 tons of Ramens P840,000 Production in tons Selling price per ton REQUIRED: Nissins Ramens 60,000 120,000 P36 P50 1. Allocate the joint costs using sales value method. 2. Compute the gross profit if (a) main products are sold at split off point and (b) main products are processed further to become Nissins and Ramens.