Question
Samaritan Manufacturing Company is in its first month of operation. The costs of the joint process were direct materials, P30,000; direct labor, P12,000; and overhead,
Samaritan Manufacturing Company is in its first month of operation. The costs of the joint process were direct materials, P30,000; direct labor, P12,000; and overhead, P8,380. Products X, Y, and Z are main products. B is a by-product. The company's policy is to recognize the net realizable value of any by-product Inventory at split-off and reduce total joint cost by that amount. Neither the main products nor the by-product require additional processing or disposal costs, although management may consider additional processing.
Weight in lbs MV at SPO point Units produced Units sold X 4,300 P66,000 3,220 2,720 Y 6,700 43,000 8,370 7,070 Z 5,400 11,200 4,320 3,800 B 2,300 2,300 4,600 4,000
1. Assuming that joint cost allocation is based on relative sales value what is the value of ending inventory of Product X?
2. Assuming that joint cost is allocated using physical measure, what is the cost of goods sold of Product Y?
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