Answered: La Loma Company produces four solvents…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materials P4, 000; Labor - P3, 0003; Overhead- P2, 000 Disposal cost Further per barrel at per barrel at processing price per Sales price Final sales split- off split- off costs barrel Barrels Wan 750 P10 P6.50 P2.00 P13.50 Tu 1, 000 8. 4.00 2.50 10.00 Tri 4, 000 11 7.00 4.00 15.50 Por 2, 000 15 9.50 4.50 19.50 If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.00. (Round all answers to the nearest peso) Using net realizable value at split- off, what amount of joint processing cost is allocated to Product Tri?
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using net…
Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.) Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing cost Final sales price per barrel M1 750 P10.00 P6.50 P2.00 P13.50 M2 1,000 8.00 4.00 2.50 10.00 M3 1,400 11.00 7.00 4.00 15.50 M4 2,000 15.00 9.50 4.50 19.50 If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00. Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using the…
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using a…
2. A vegetable oil refining company obtains four products whose cost details are: Joint costs of the four products: Rs. 8,29,600 Outputs: A - 5,00,000 litres; B-10,000 litres,C- 5,000 litres and D- 9,000 kgs. Further processing costs: A Rs. 2,40,000; B Rs. 48,000, C-Nil and D-Rs. 8,030. The products can be sold as intermediates i.e., at split-off point without further processing. The sale prices are: A Per litre B Per litre C per litre D* Per Kg. As finished Product 1.84 8.00 6.40 26.67 As Intermediate (a) Calculate the product-wise profit allocating joint costs. (b) Compare the profitability in selling the products with and without further processing. 1.20 4.00 6.40 24.00
Previtz Company produces two products from a joint process: X and Z. Joint Processing Costs for this production costs for this production cycle are P 8,000 Sales Price Disposal Cost Further Final Sale Per Yard at Per yard at Processing Price per Yards Split off Split Off Per Yard Yard X 1,500 P 6.00 3.50 P 1.00 P 7.50 Y 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such cost will be borned by the buyer Requirement…
Previtz Company produces two products from a joint process: X and Z. Joint Processing Costs for this production costs for this production cycle are P 8,000 Sales Price Disposal Cost Further Final Sale Per Yard at Per yard at Processing Price per Yards Split off Split Off Per Yard Yard X 1,500 P 6.00 3.50 P 1.00 P 7.50 Y 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such cost will be borned by the buyer Requirement…
Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales priceper lb. atsplit-off Disposalcost perlb. atsplit-off Furtherprocessingper pound Finalsales priceper pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)? $725 $416 $959 $700
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 pointAce 10,000 P40Bat 15,000 P20Can 25,000 P12Additional data for the period were provided:All the ace items were sold for a gross profit of P100,000.The joint costs were allocated using physical method.Requirement:1. What is the gross profit/(loss) if all the Bat items are sold in current year?2. Assuming the joint costs are fixed, what is the joint cost allocated to can items using the relative sales value method?
A Chemical Company manufactures joint products Pep and Vim, and a by product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Unit Produced 5000 4000 1000 Sales price per unit 50 40 5 Further processing cost per unit 10 5 0 Selling and adm. Expense per unit 0 0 2 operating profit per unit 0 0 1 Required: The gross profit for pep is The value of Zest to deducted from the joint cost is
Benjamin CompanyBenjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales priceper yard atsplit-off Disposalcost per yard atsplit-off Furtherprocessingper yard Final saleprice peryard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product X (round to the nearest dollar)? Select one: a. $2,500 b. $3,243 c. $4,000 d. $5,500

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	Barrels	Sales price per barrel at split-off	Disposal Cost per barrel at split-off	Further processing costs	Final sales price per barrel
Wan	750	10	6.50	2.00	13.5
Tu	1,000	8	4.00	2.50	10.00
Tri	4,000	11	7,00	4.00	15.50
Por	2,000	15	9.50	4.50	19.50