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    Pcpar Joint and by Products

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    doora keys
    The document describes two problems involving the allocation of joint costs between joint products and by-products. Problem A provides information on four products - Crystal, Black, Clear, and Silver - produced by Beshie Company from the same process. It asks questions about allocating the joint processing cost of P9,000 between the products using different allocation methods. Problem B provides production and cost information for three products - Alpha, Beta, and Culpa - produced by Carron Butcher Manufacturing Company. It asks to calculate the unit costs for each product using the net realizable value method, treating Culpa as either a by-product of the overall process or a by-product of just Beta.

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    Pcpar Joint and by Products

    Uploaded by

    doora keys
    96 views3 pages
    The document describes two problems involving the allocation of joint costs between joint products and by-products. Problem A provides information on four products - Crystal, Black, Clear, and Silver - produced by Beshie Company from the same process. It asks questions about allocating the joint processing cost of P9,000 between the products using different allocation methods. Problem B provides production and cost information for three products - Alpha, Beta, and Culpa - produced by Carron Butcher Manufacturing Company. It asks to calculate the unit costs for each product using the net realizable value method, treating Culpa as either a by-product of the overall process or a by-product of just Beta.

    Original Title

    PCPAR-JOINT-AND-BY-PRODUCTS

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    The document describes two problems involving the allocation of joint costs between joint products and by-products. Problem A provides information on four products - Crystal, Black, Clear, and Silver - produced by Beshie Company from the same process. It asks questions about allocating the joint processing cost of P9,000 between the products using different allocation methods. Problem B provides production and cost information for three products - Alpha, Beta, and Culpa - produced by Carron Butcher Manufacturing Company. It asks to calculate the unit costs for each product using the net realizable value method, treating Culpa as either a by-product of the overall process or a by-product of just Beta.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    96 views3 pages

    Pcpar Joint and by Products

    Uploaded by

    doora keys
    The document describes two problems involving the allocation of joint costs between joint products and by-products. Problem A provides information on four products - Crystal, Black, Clear, and Silver - produced by Beshie Company from the same process. It asks questions about allocating the joint processing cost of P9,000 between the products using different allocation methods. Problem B provides production and cost information for three products - Alpha, Beta, and Culpa - produced by Carron Butcher Manufacturing Company. It asks to calculate the unit costs for each product using the net realizable value method, treating Culpa as either a by-product of the overall process or a by-product of just Beta.

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    JOINT AND BY-PRODUCT

    PROBLEM A:Beshie Company produces four solvents from the same process:
    Crystal, Black, Clear, and Silver. Joint product costs are P9,000. (Round all answers
    to the nearest Peso.)

    Disposal Final
    Sales price cost Further sales
    per barrel per barrel processing price
    Barrels at split-off at split-off costs per barrel
    Cryst
    750 P10.00 P6.50 P2.00 P13.50
    al
    Black 1,000 8.00 4.00 2.50 10.00
    Clear 1,400 11.00 7.00 4.00 15.50
    Silver 2,000 15.00 9.50 4.50 19.50

    If Beshie sells the products after further processing, the following disposal costs will
    be incurred: Crystal, P2.50; Black, P1.00; Clear, P3.50; Silver, P6.00.

    1. Refer to Beshie Company. Using a physical measurement method, what


    amount of joint processing cost is allocated to Product Black?
    a. P1,748
    b. P2,447
    c. P1,311
    d. P3,495

    2. Refer to Beshie Company. Using a physical measurement method, what


    amount of joint processing cost is allocated to Product Clear?
    a. P3,495
    b. P2,447
    c. P1,748
    d. P1,311

    3. Refer to Beshie Company. Using a physical measurement method, what


    amount of joint processing cost is allocated to Product Crystal?
    a. P3,495
    b. P2,447
    c. P1,748
    d. P1,311

    4. Refer to Beshie Company. Using a physical measurement method, what


    amount of joint processing cost is allocated to Product Silver?
    a. P3,495
    b. P2,447
    c. P1,748
    d. P1,311
    5. Refer to Beshie Company. Using sales value at split-off, what amount of
    joint processing cost is allocated to Product Black?
    a. P4,433
    b. P2,276
    c. P1,108
    d. P1,182

    6. Refer to Beshie Company. Using sales value at split-off, what amount of


    joint processing cost is allocated to Product Crystal?
    a. P4,433
    b. P2,276
    c. P1,108
    d. P1,182

    7. Refer to Beshie Company. Using sales value at split-off, what amount of


    joint processing cost is allocated to Product Silver?
    a. P4,433
    b. P1,182
    c. P1,108
    d. P2,276

    8. Refer to Beshie Company. Using sales value at split-off, what amount of


    joint processing cost is allocated to Product Clear?
    a. P4,433
    b. P1,182
    c. P1,108
    d. P2,276

    9. Refer to Beshie Company. Using net realizable value at split-off, what


    amount of joint processing cost is allocated to Product Crystal?
    a. P1,550
    b. P1,017
    c. P4,263
    d. P2,170

    10. Refer to Beshie Company. Using net realizable value at split-off, what
    amount of joint processing cost is allocated to Product Black?
    a. P1,550
    b. P1,017
    c. P4,263
    d. P2,170
    11. Refer to Beshie Company. Using net realizable value at split-off, what
    amount of joint processing cost is allocated to Product Clear?
    a. P1,017
    b. P1,550
    c. P2,170
    d. P4,263

    12. Refer to Beshie Company. Using net realizable value at split-off, what
    amount of joint processing cost is allocated to Product Silver?
    a. P1,017
    b. P1,550
    c. P2,170
    d. P4,263

    PROBLEM B: Carron Butcher Manufacturing Company makes three products: Alpha


    and Beta are considered main products and Culpa a by-product.

    Production and sales for the year were:


    220,000 lbs. of Product Alpha, salable at P6.00
    180,000 lbs. of Product Beta, salable at P3.00
    50,000 lbs. of Product Culpa, salable at P.90

    Production costs for the year:


    Joint costs P276,600
    Costs after separation:
    Product Alpha 320,000
    Product Beta 190,000
    Product Culpa 6,900

    Required: Using the by-product revenue as a cost reduction and net realizable
    value method of assigning joint costs, compute unit costs
    (13) if Culpa is a by-product of the process and
    (14) if Culpa is a by-product of Beta.

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