Question
Q#01: Joy Co. manufactures two joint products (Y and Z). Joy produced 12,000 units of Y with an after split-off sales value, of P45,000. However,
Q#01: Joy Co. manufactures two joint products (Y and Z). Joy produced 12,000 units of Y with an after split-off sales value, of P45,000. However, if Y were to be processed further, additional cost of P6,000 will be incurred but the sale value will increase to P60,000. Joy produced 6,000 units of Z with an after split-off sales value of P30,000.However, if Z were to be further processed, additional cost of P3,000 will be incurred but the sale value will go up to P36,000. Under the relative sales value at split-off approach, the allocation to Y from total product cost is P27,000. What is the total joint product cost?
A. 75,000
B. 27,000
C. 45,000
D. 67,500
Q#02: Margarette's Meat Corporation uses a process of cost system and sells a variety of cooked meat, skins, and cuttings. Four joints produced out of the process are as follows:
PRODUCTS | AMOUNT PRODUCED | |
Panga | 400 | |
Tadyang | 9,000 | |
Soup No.5 | 5,100 | |
Litid | 1,000 |
The split off point for these products occurs in Division B and the costs incurred up to this point are 20,000 for direct materials, 15,000 for direct labors, and 7,000 for factory overhead. What are the joint costs allocated to Tadyang by using the physical output method for Litid and Tadyang respectively?
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