Additional Data For The Period Were Provided
Additional Data For The Period Were Provided
Additional Data For The Period Were Provided
Problem Solving.
1. MIX Inc. is conducting a joint process which results to three products. The following production data were
provided by MIX Inc. for the current period:
Product Name Units Produced Selling price per unit at split off point
Ace 10,000 P40
Bat 15,000 P20
Can 25,000 P12
1. What is the gross profit/(loss) if all the Bat items are sold in current year?
a. 200,000
b. (150,000)
c. (100,000)
d. 50,000
2. Assuming the joint costs are fixed, what is the joint cost allocated to Can Items using the relative sales
value method?
a. 250,000
b. 450,000
c. 750,000
d. 300,000
2. COMBI Inc. manufactures three joint products. The following production data were provided by COMBI Inc. for
the current period:
The company uses the net realizable value method for allocating joint costs.
3. BLEND Inc. manufactures three joint products and allocates joint costs at its relative sales value at split-off
point. The following joint product costs were incurred for the current period:
Raw Materials 180,000
Direct labor 120,000
Factory overhead 200,000
The following production data were provided by BLEND Inc. for the current period.
Product Name Units Produced Selling price at split off point Additional Processing Cost Final Selling price
Uno 10,000 20.00 50,000 24
Dos 20,000 15.00 60,000 18
Tres 40,000 12.50 100,000 16
What is the total gross/(loss) for the current period if BLEND Inc. Will correctly process further the proper
items?
a. 540,000
b. 530,000
c. 500,000
d. 510,000
4. CONSO Inc. manufactures joint products ALT and TAB, and a by-product DEL. Costs are assigned to the joint
products by the net realizable value or final market value method which considers further processing costs in
subsequent operations. It is the policy of CONSO Inc. to account for its by-product by market value or reversal
cost6 method or deduction of net realizable value of by-product from the joint manufacturing costs of main
products. The total manufacturing costs for 100,000 units were P1,520,000 during the year. Production and
costs data follow:
ALT TAB DEL
Units produced 60,000 30,000 10,000
Sales price per unit P70 P25 P10
Further processing costs per unit 20 5 3
Selling and admin expense per unit 5
1. What is the value of DEL to be deducted from the joint manufacturing costs?
a. P100,00
b. P70,000
c. P50,000
d. P20,000
2. What is the gross profit of ALT for the year?
a. 1,500,000
b. 1,600,000
c. 1,400,000
d. 1,750,000
3. What is the gross profit of TAB for the year?
a. 600,000
b. 500,000
c. 700,000
d. 350,000
5. MERGE Inc. manufactures ZEN product from a process that yields a by-product called YAN. The by-product
requires additional processing costs of P30,000. The by-product will require selling and administrative expenses
totalling P20,000. It is MERGE’s accounting policy to charge the joint costs to the main product only. Information
concerning a batch produced during the year ended December 31, 2016 follows:
The selling and administrative expense of MERGE Inc. for the year ended December 31, 2016 is P1,000,000
exclusive of that for the by-product.
1. What is the gross profit for the year if the net revenue from by-product is presented as other income?
a. 1,200,000
b. 1,230,000
c. 1,218,000
d. 1,118,000
2. What is the gross profit for the year if the net revenue from by-product is presented as additional sales
revenue?
a. 1,230,000
b. 1,200,000
c. 1,218,000
d. 1,118,000
3. What is the net income for the year if the net revenue from by-product is presented as additional sales
revenue?
a. 200,000
b. 218,000
c. 230,000
d. 118,000
4. What is the net income for the year if the net revenue from by-product is presented as deduction from the
total manufacturing costs of the main product?
a. 218,000
b. 200,000
c. 230,000
d. 118,000