Problem 1.

Brant Corporation manufactures two products out of a joint process- Scout and Andro. The joint (common) cost
incurred are P400,000 for a standard production run that generates 70,000 lbs of Scout and 30,000 lbs of Andro.
Scout sells for P9.00 while Andro sells for P7.00 per lb.

Q1. If there are no additional processing cost incurred after the split-off point, the amount of joint cost of each
production run allocated to Scout on a physical-quantity basis is__________

Q2. If there are no additional processing cost incurred after the split-off point, the amount of joint cost of each
production run allocated to Andro on a sales value at split-off basis is__________

Q3. If additional processing cost beyond the split-off point are P1.00 per lb for Scout and P2.3333 per lb for Andro,
the amount of joint cost of each production run allocated to Andro on a physical quantity basis is___________

Q4. If additional processing cost beyond the split-off point are P1.00 per lb for Scout and P2.3333 per lb for Andro,
the amount of joint cost of each production run allocated to Andro on an estimated net realizable value basis
is___________?

Q5. Assume the same cost information as in question 4. The amount of joint cost of each production run allocated to
Scount using the contant gross-margin percentage NRV method is_____?

Problem 2
GEMS Company manufactures 4 products namely G,E and M and the by-product S. The production costs totaled
P600,000, which is composed of P250,000 materials, P150,000 labor and P200,000 overhead cost. The process
yielded 20,000 units of G, 12,000 units of E, 18,000 units of M and 2,500 units of S. Products G, E, M and S weigh 3
lbs, 5 lbs, 4.2 lbs and 1 lb respectively. The sales value for each of product G is P33, E is P35, M is P40 and S is P4.

Requirement 1. What is the joint cost for each product? Use physical method for joint cost and sales method for by-
product.

Requirement 2. What is the joint cost for each product? Use physical method for joint cost and production method
for by-product.

Requirement 3. What is the joint cost for each product? Use sales method for joint cost and sales method for by-
product.
Requirement 4. What is the joint cost for each product? Use sales method for joint cost and production method for
by-product.

Problem 3 Gasoline Heating Oils

Total market value of gallons sold P400,000 P285,000
Market value per gallon P10 P6
Beginning inventory (gallons) 10,275 20,000

The above table was used by the Trisikstin Company for allocating P450,000 of joint cost incurred in October 2018 for
Department A. During the month the company had no ending inventory. No additional processing costs were
incurred. The Trisikstin Company uses a process cost system.

Requirement 1. What is the joint cost of each product using the sales value method?
Requirement 2. What is the joint cost of each product using the constant gross mrgin approach?

Problem 4
Product Kaltran has been allocted P7,500 of total joint cost of P30,000 for the 1,500 units produced. Kaltran can be
sold at the split off point for P4 per unit, or it can be processed further with additional costs of P2,000 and sold for P7
per unit. If Kaltran is processed further and sold, the result would be________?

Problem 5
Tripiptin Company manufactures two products out of a joint process: Compod and Ultrasene. The joint cost incurred
are P2,500,000 for a standard production run that generates 120,000 gallons of Compod and 80,000 gallons of
Ultrasene. Compod sells for P20 per gallon while Ultrasene sells for P32.50

Requirement 1
If there are no additional processing costs incurred after split-off point, calculate the amount of joint cost allocated to
Compod on a physical-units basis

Requirement 2
If there are no additional processing costs incurred after split-off point, the cost to produce per unit of Ultrasene on a
physical-units basis is______?

Requirement 3
If there are no additional processing costs incurred after split-off point, calculate the amount of joint cost allocated to
Ultrasene on a relative-sales-value basis

Requirement 4
If there are no additional processing costs incurred after split-off point, the cost to produce each unit of Compod on a
relative-sales-value basis is______?

Requirement 5
Suppose the following additional processing costs are required beyond the split-off point in order to obtain Compod
and Ultrasene: P1 per gallon for Compod and P11 per gallon for Ultrasene. Calculate the amount of joint cost
allocated to Compod on a net-realizable-value basis.

Requirement 6
Suppose the following additional processing costs are required beyond the split-off point in order to obtain Compod
and Ultrasene: P1 per gallon for Compod and P11 per gallon for Ultrasene. Suppose also that Compod can be
processed further into a product called Compodelene, at an additional cost of P4 per gallon. Compodalene will be
sold for P26 per gallon by independent distributors. The distributor's commission will be 10% of the sales price.
Should Tripiptin sell Compod or Compodalene?
 int (common) cost Weight
0,000 lbs of Andro. Scount 70,000.00 lbs 280,000.00 Q1
Andro 30,000.00 lbs 120,000.00
Total 100,000.00 400,000.00
joint cost of each
Weight
Scount 70,000.00 lbs 630,000.00 300,000.00
joint cost of each Andro 30,000.00 lbs 210,000.00 100,000.00 Q2
Total 100,000.00 840,000.00 400,000.00

333 per lb for Andro, Weight Joint Cost APC TC

s is___________ Scount 70,000.00 lbs 280,000.00 70,000.00 350,000.00
Andro 30,000.00 lbs 120,000.00 69,999.00 189,999.00 Q3
Total 100,000.00 400,000.00 539,999.00
333 per lb for Andro,
able value basis FSV APC JC
Weight NRV
Scount 70,000.00 lbs 630,000.00 70,000.00 560,000.00 319,999.54
Andro 30,000.00 lbs 210,000.00 69,999.00 140,001.00 80,000.46
duction run allocated to Total 100,000.00 400,000.00 139,999.00 700,001.00 400,000.00

Sales TC APC JC
Sales 840,000.00 S 630,000.00 404,999.25 70,000.00 334,999.25
(COS) 539,999.00 A 210,000.00 134,999.75 69,999.00 65,000.75
GP 300,001.00 400,000.00
GPM 35.71%
Cost Ratio 64.29%

Units
ction costs totaled G 250,000.00 250000
cost. The process E
G, E, M and S weigh 3 150,000.00 150000
M is P40 and S is P4. M 200,000.00 200000 Requirement 1
600,000.00 600000

Units Weight
d sales method for by- G 250,000.00 3 750,000.00
E 150,000.00 5 750,000.00
M 200,000.00 4.2 840,000.00
d production method 600,000.00 2,340,000.00

ales method for by-

roduction method for

Kerosene
P365,000
P7
25,000

red in October 2018 for

sing costs were

h?

duced. Kaltran can be

f P2,000 and sold for P7

The joint cost incurred

80,000 gallons of

of joint cost allocated to

er unit of Ultrasene on a

of joint cost allocated to

ch unit of Compod on a

der to obtain Compod

unt of joint cost

der to obtain Compod

Compod can be
ompodalene will be
of the sales price.
 Cost/unit
5.00
6.33

TC Cost/unit
389,999.54 5.57
149,999.46 Q4 5.00
539,999.00

Q5