Shack Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are P8,000.

	Yards	Sales price per yard at split-off	Disposal cost per yard at split-off	Further processing per yard	Final sale price per yard
P	1,500	P6.00	P3.50	P1.00	P 7.50
A	2,200	9.00	5.00	3.00	11.25

If P and A are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.

Required:

a. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product P and A (round to the nearest peso)?

b. Which products would be processed further?