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17.
20. (d)

By-Product A By-Product B
Sales P12,000 P 7,000
Manufacturing costs:
Before separation 6,500 2,700
After separation 2,200 1,800
Total 8,700 4,500
Gross profit P 3,300 P 2,500

21. (d)

Sales – Main Product: (10,000 P8) P80,000

Sales – By-Product 12,000
Total revenue for sales 92,000
Cost of sales:
Manufacturing costs: (12,000 x P5) P60,000
Less ending inventory (1,000 x P5) 5,000 55,000
Gross profit 37,000
Selling costs 20,000
Net income P17,000

22. (a)

Units produced: (30,000 + 15,000) 45,000

Unit sales price: (P45,000 / 30,000) P 1.50
Sales value at split off point – Product Red P67,500

23. (c)

Total costs – Department One:

Cost of Material X P144,000
Direct labor 21,000
Manufacturing overhead 15,000
Total joint costs P180,000

24. (a)

Sales Value Additional Adjusted Sales

Product Before Allocation Processing Costs Value at SOP
Red P 67,500 P 0 P 67,500
White 144,000 99,000 45,000
Blue 283,500 171,000 112,500
Total P225,000

Allocation of joint costs:

Red: (P67,500 / P225,000 x P180,000) P 54,000
White: (P45,000 / P225,000 x P180,000) 36,000
Blue: (P112,500 x P225,000 x P180,000) 90,000
Total P180,000

Cost of sales of Product White: (P36,000 + P99,000) P135,000

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