The Wood Company produces 3 joint products at a joint cost of P 100,000. Two of these products were processed further. Production and sales were:

Product Weight Sales Addt'l Processing Cost

A 300,000 lbs. P 245,000 P 200,000

B 100,000 lbs. 30,000 None

C 100,000 lbs. 175,000 100,000

1.) If the net realizable value method is used, how much of the joint costs would be allocated to product C? Assume that B is accounted for as a joint product.

a.) P 38,889

b.) P 62,500

c.) P 50,000

d.) P 41,667

2.) If joint costs are allocated based on relative weight of the outputs, how much of the joint costs would be allocated to product A? (all products are joint products)

a.) P 43,750

b.) P 60,000

c.) P 62,500

d.) P 50,000

3.) What is the net income of Wood Company if the net realizable value method is used in allocating joint costs?

a.) P 50,000

b.) P 150,000

c.) P 20,000

d.) P 350,000

4. Assume B is a by-product whose sales value is credited to the joint production costs. If the net realizable value method is used, how much of the joint costs would be allocated to product C

P 62,500

P 50,000

P 45,000

P 43,750