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Producers Inc. purchases its major raw materials from Consolidators Co. and processes them up to split-off point, where two products (AA and CC) are obtained.
Producers Inc. purchases its major raw materials from Consolidators Co. and processes them up to split-off point, where two products (AA and CC) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. For the month just ended the data on the next page were made available: 25,000 units Raw materials purchased Production AA 15,000 units CC Sales 15,000 units 14,500 units @ P2 CC 15,000 units @ P5 The cost of purchasing 25,000 units of raw materials and processing them up to the split-off point to yield equal number of production of AA and CC of 15,000 units each amounted to P37,500. There were no beginning inventories but there were 500 units of AA at the end of the month. 20. Using the sales value at split-off method, the approximate weighted cost proportions may be rounded) of AA and CC were a. AA, 29% and CC, 71% b. AA, 33% and CC, 67% c. AA, 49% and CC, 51% d. AA, 50% and CC, 50%
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