1
CHAPTER 14
Answers to Multiple Choice – Theoretical 1. 2. !. 4. $.
c b d c d
6. . ". #. 1%.
b a a a b
11. 12. 1!.
d a c
&olutions to Multiple Choice – Co'putational 1.
(a)
P21,000 / 20,000 kilos 2.
=
P1.%$ per *ilo +or each product
(a)
Product Red Blue
No. of Kilos 10,000 10,000
Sales Value Value Per Kilo P1.20 2.00
Total Sales Value Value P12,000 20,000 P32,000
Ratio 37.5% 62.5% 100.0%
Allocated to Red: (P21,000 x 37.5% = P7,!75 / 10,000 kilos = P%.#,*ilo Allocated to Blue: (P21,000 x 62.5% = P13,125 / 10,000 kilos = P1.!1,*ilo !.
(a)
Product Red Blue
Final Sales Value Value P12,000 20,000
Additional Processing Costs P "0" 2,000
Adjusted Sales Value Value P12,000 1!,000 P30,000
Ratio #0% 60% 100%
Allocated to Red: (P21,000 x #0% = P!,#00 / 10,000 kilos = P%."4 ,*ilo Allocated to Blue: (P21,000 x 60% = P12,600 / 10,000 10,000 kilos = P1.26 ,*ilo 4.
(b)
$ales alue at s&lit o'' &oit: P)oduct A: (500 x P10 P)oduct B: (1,000 x P1# *otal
P 5,000 1#,000 P1+,000
Allo llocated ted to P)oduct B: (P1#,000/P1+,000 x P#,560 = Additioal &)ocessi costs: (1,000 x P2 Cost o+ Product -
P 3,3 3,360 2,000 P $!6%
2 $.
6.
(a)
-oit costs ess sales alue o' B"&)oduct -oit costs allocated to P)oduct A ad B
P26#,000 10,000 P25#,000
Allocatio to P)oduct B: (P150,000 / P##0,000 P##0,000 x P25#,000 =
P"6$#1
(a)
P30,000 / 50% = P6%%%% total /oint costs .
(a)
$ales alue o' P)oduct au'actu)i costs: Allocated oit cost: 4P#50,000 x (60/750 Additioal &)ocessi costs 0ross pro+it ".
P36,000 12,000
#!,000 P!#%%%
(c )
P12,000 / P20,000 x P10,000 = #.
P!7,000
P6%%%
(c )
-oit costs costs allocated allocated to to P)oduct P)oduct $ ad ad *: *: (!0/200 (!0/200 x P120,0 P120,000 00 = P#!,000 P#!,000 -oit costs allocated to P)oduct * 1!,000 oint costs allocated to Product & P!%%%% 1%.
11.
(b)
$ales alue at s&lit o'' &oit: P)oduct : (P10 x 5,000 P)oduct : 4 (P15 P7 x 12,500 *otal
P 50,000 100,000 P150,000
au'actu)i costs P)oduct : Allocated oit costs (P+6,000 x 100/150 Additioal &)ocessi costs *otal
P 6#,000 !7,500 P151,500
Cost ost o+ end endin in in3 in3ento entor r55 (2% (2%%% %%,1 ,12 2$% $%% P1$ P1$1$% 1$%%) %)
P 24 242 24%
(b)
$ales alue at s&lit o'' &oit: P)oduct 1: (P60,000 P2#,000 P)oduct 2: (P60,000 P36,000 *otal
P36,000 2#,000 P60,000
Allocated to Product 15 (! (!6,6% P$$%%%)
P!!%%%
3 12.
(d)
*otal &)oductio costs ess et )ealia8le o' B"P)oduct: B"&)oduct sales Additioal &)ocessi costs 9ost o' ai &)oduct ess edi ieto) ai P)oduct Cost o+ sales – Main Product
P120,000 P30,000 (25,000
Cost o+ sales – -7Product 1!.
P
P 2,#00 ( 600 600 ( 2# 2#0 ( 120 P 144%
(b)
$ales: (2,000 x P1.50 9ost o' 8"&)oduct sales: Allocated oit cost Additioal au'actu)i costs 0ain on sale 16.
P1!,000 ( #,!00 #,!00 ( 3,600 3,600 ( 1,!00 P "%%
(a)
;stiated sales &)ice: (2,000 x P1.20 ;stia ;stiated ted au'a au'actu ctu)i )i cost cost a'te) a'te) se&a)a se&a)atio tio:: (2,000 (2,000 x P.30 .30 ;stiated selli ex&eses: (P2,#00 x 10% ;stiated o)al &)o'it: (P2,#00 x 5% Cost o+ b7product 1$.
%
(a)
;stiated sales &)ice: (6,000 x P3 ;stia ;stiated ted au'a au'actu ctu)i )i cost cost a'te) a'te) se&a)a se&a)atio tio:: (6,000 (6,000 x P.!0 .!0 ;stiated ;stiated selli selli ad adiist)ati adiist)atiee ex&eses: ex&eses: (1!,000 (1!,000 x 20% ;stiated o)al et &)o'it: (P1!,000 x 10% 8alue o+ b7product 14.
5,000 115,000 15,000 P1%%%%%
P 3,000 P1,##0 600
2,0#0 P #6%
(d)
$ales ai P)oduct: (20,000 x P1.75 9ost o' sales: Beii ieto): (2,000 x P.70 P)oductio costs: (25,000 x P0.75 B"&)oduct sales
P35,000 P 1,#00 1!,750 (!50 1+,300 5,00 ,00#
1#,2+ #,2+6 6 20,70# 12,000 P "%4
#
1.
(d)
$ales ai P)oduct 9ost o' sales: P)oductio costs ess et )eeue o' 8"&)oduct: $ales: (3 ( 3,500 x P1.50 P5,250 Addt>l &)ocessi costs ( 30 300 ;stiated ex&eses ( +00
P#!,000 P#0,000
#,050 35,+50 7,020
2!,+30 1+,070 #,200 P14"%
(a)
-oit costs ess 8"&)oduct cost ()ee)sal cost et?od: $ales alue: (1,000 x P5 a)keti ad adiist)atie ex&eses @&e)ati icoe: (1,000 x P1 Allocated to ai &)oduct ad ;
P172,000 P 5,000 (2,000 (1,000
Sales value at split off point: ai &)oduct : (P250,000 P50,000 ai &)oduct ;: (P160,000 " P20,000 *otal
2,000 P170,000
P200,000 1#0,000 P3#0,000
$ales ai P)oduct P250,000 au'actu)i costs: Allocated oit cost: (P200,000/P3#0,000 x P170,000 P100,000 Additioal &)ocessi costs 50,000 150,000 0ross pro+it – Main Product : P1%%%%% 1#.
(a) Cost of By-Product $ales P)oductio cost a'te) se&a)atio $elli costs
$ales ai P)oduct P)oductio costs: Be'o)e se&a)atio: (75,000 " +,200 A'te) se&a)atio )oss &)o'it $elli costs 9et inco'e
A B P12,000 P 7,000 (2,200 (1,!00 (1,500 (1,100 (1,!00 (1,#00 P 6,500P 2,700
P150,000 P65,!00 23,000
!!,!00 P 61,200 12,000 P 4#2%%
5
2%.
(d)
$ales au'actu)i costs: Be'o)e se&a)atio A'te) se&a)atio *otal 0ross pro+it 21.
By-Product A P12,000
By-Product B P 7,000
6,500 2,200 !,700 P !!%%
2,700 1,!00 #,500 P 2$%%
(d)
$ales ai P)oduct: (10,000 P! $ales B"P)oduct *otal )eeue 'o) sales 9ost o' sales: au au'a 'act ctu) u)i i cost costs: s: (12,0 (12,000 00 x P5 P5 ess edi ieto) (1,000 x P5 )oss &)o'it $elli costs 9et inco'e 22.
P!0,000 12,000 +2,000 P60, P60,00 000 0 5,000
(a)
its &)oduced: (30,000 C 15,000 it sales &)ice: (P#5,000 / 30,000 $ales alue at s&lit o'' &oit P)oduct Red 2!.
#5,000 P 1.50 P67,500
(c )
*otal costs e&a)tet @e: 9ost o' ate)ial i)ect la8o) au'actu)i oe)?ead Total /oint costs 24.
55,000 37,000 20,000 P1%%%
P1##,000 21,000 15,000 P1"%%%%
(a)
Product Red D?ite Blue *otal
Sales Value Before Allocation P 67,500 1##,000 2!3,500
Additional Processing Costs P 0 ++,000 171,000
Adjusted Sales Value at SP P 67,500 #5,000 112,500 P225,000
Allocation of joint costs: Red: (P67,500 / P225,000 x P1!0,000 D?ite: (P#5,000 / P225,000 x P1!0,000 Blue: (P112,500 x P225,000 x P1!0,000 *otal
P 5#,000 36,000 +0,000 P1!0,000
Cost o+ sales o+ Product ;hite5 (P!6%%% < P##%%%)
P1!$%%%
6
2$.
(a) Cost Cost o+ end endin in in3ent in3entor or – Red5 Red5 (1$ (1$%% %%%,4 %,4$% $%%% %% P$4%% P$4%%%) %)
26.
P1"%% P1"%%% %
(a)
$ales Potato skis 9ost o' oods sold: P)oductio costs: (P30,000 x !0%
P!0,000 P2#,000 P11,!25 +,000
2,!25
21,175 5!,!25 3,!00 P$$%2$
7
&olutions to Proble's
Proble' 1471 1 a5 a5
&ale &aless 3al 3alue ue at spli split7 t7o+ o+++ poi poin nt 'et 'etho hod d Copra
$ales alue at s&lit"o'' &oit: 9o&)a: (1,200 x P50 Eiea): (!00 x P75 Ratio: 9o&)a: 9o&)a: (P60,0 (P60,000/ 00/P12 P120,0 0,000 00 Eiea): (P6,000/P120,000 Allocated oit costs: 9o&)a: (P100,000 x 50% Alco?ol: (P100,000 x 50% b5
P60,000
P120,000
50%
100%
P50,000
P100,000
P60,000
50%
P50,000
Co Copra 1,200
Alcohol !00
Total 2,000
60% #0% P60,000 P#0,000
P100,000
Alcohol
Total
P100,000 20,000 P !0,000
P160,000 20,000 P1#0,000
9R8 'ethod Copra
Fial sales alue: 9o&)a: (1,200 x P50 Alco?ol: (500 x P200 ess se&a)a8le costs
Total
Phs Phsic ica al7'e l7'ea asure ure 'etho ethod d
P?sical easu)e (tos Ratio: 9o&)a: (1,200/2,000 Alco?ol: (!00/2,000 Allocated oit costs: 9o&)a: (P100,000 x 60% Alco?ol: (P100,000 x #0% c.
Alcohol
P60,000 0 P60,000 #3% 57% P#3,000 57,000
P100,000
Physical Measure P60,000 60,000 P 0 0%
NRV P60,000 #3,000 P17,000 2!.33%
Copra5
$ales ess oit costs )oss a)i )oss a)i &e)cetae
Sales Value At Splitoff Po Point P60,000 50,000 P10,000 16.67%
!
Problem 1-1 !continued" b.
Alcohol5
$ales ess: -oit costs $e&a)a8le costs *otal &)oductio costs )oss a)i )oss a)i &e)cetae !.
Sales Value Value At Splitoff Point P100,000 50,000 20,000 70,000 P 30,000 30%
Physical Measure P100,000 #0,000 20,000 60,000 P #0,000 #0%
NRV P100,000 57,000 20,000 77,000 P 23,000 23%
Gc)eetal )eeues ')o 'u)t?e) &)ocessi o' iea) ito alco?ol: (500 tos x P200 (!00 tos x P75 Gc) Gc)e ee etal tal costs costs o' 'u)t? 'u)t?e) e) &)oc &)ocess essi i ie iea a)) ito ito alco alco?o ?oll Gc)eetal o&e)ati icoe ')o 'u)t?e) &)ocessi
P#0,000 20,0 20,000 00 P20,000
*?e o&e)ati icoe Hould 8e )educed 8 P20,000 i' Bulaca sold !00 tos o' iea) to aua c?eicals istead o' 'u)t?e) &)ocessi t?e iea) ito alco?ol.
Proble' 1472 1.
2.
!.
Do)k i &)ocess Fi)st e&a)tet +5,372.++ ate)ials Pa)oll &aa8le A&&lied oe)?ead *o )eco)d costs icu))ed i t?e Fi)st e&a)tet. B"&)oduct ieto) Do)k i &)ocess Fi)st e&a)tet *o )eco)d 8"&)oduct at estiated sales s ales alue ad )eoed ')o t?e ai &)oduct. 200 x 5% = 10 x P130 = P1,300. 9as? oss o sale o' 8"&)oduct B"&)oduct ieto) *o )eco)d sale o' 8"&)oduct.
76,2+2.27 11,232.32 7,!#7.#0
1,300.00 1,300.00
61!.00 32.00 650.00
+
Proble' 147! 1.
2.
$ales P)ice : (#00 uits x P26.50 ess: a8o): (#00 uits x P# @e)?ead: (#00 uits x P2 $elli costs: (#00 uits x P3
$elli P)ice: (#00 uits x P26.50 ess ess:: 9o 9oo o cost cost assi assi ed ed to B"P B"P)o )odu duct ct Additioal &)ocessi costs $elli costs P)o'it o sale
P10,600 P1,600 !00 1,200 1,060
#,660 P 5,+#0
P10,600 P5,+ P5,+#0 #0 2,#00 1,200
+,5#0 P 1,060
!.
ate)ials a8o) @e)?ead *otal &)oductio costs ess: cost o' B"&)oduct 9ost o' ai &)oduct iided 8 it cost o' ai &)oduct
4.
Jes t?e co&a Has Hise to &)ocess t?e 8"&)oduct &e) co&utatio 8eloH: $ales &)ice o' B"&)oduct a'te) 'u)t?e) &)ocessi Additioal &)ocessi ad selli costs a'te) se&a)atio: a8o) costs P1,600 @e)?ead costs !00 $elli costs 1,200
P 600,000 160,000 200,000 P +60,000 5,+#0 P +5#,060 I 7,600 P 125.53
P10,600
3,600 P 7,000 5,600 P 1, 1,#00
10
Proble' 1474
a# Reco$ni%ed at Production
1.
b# Reco$ni%ed at Sale
Reeues: ai P)oduct P1,600,000 (a B"&)oduct 0 *otal )eeues 1,600,000 9ost o' oods sold: au'actu)i costs 1,200,000 ess 8"&)oduct )eeue #0,000 (8
P1,600,000 2!,000 (d 1,62!,000 1,200,000 0 1,200,000 2#0,000 (e +60,000 P 66!,000
16,0 16,000 00 x P20 P200 0 #,00 #,000 0 x P20 P20 2,000/10,00 2,000/10,000 0 x P1,160,000 P1,160,000 = P232,00 P232,000 0 1,#0 1,#00 0 x P20 P20 2,000/10,00 2,000/10,000 0 x P1,200,000 P1,200,000 = P2#0,000 P2#0,000
2.
9oke Pe&se
Re Reco$ni%ed at production P232,000 12,000 (a
Reco$ni%ed at Sale P2#0,000 0
(a ;di ;di ieto) ieto) s?oH s?oH at u)eali u)ealied ed selli selli &)ice. &)ice. BG C P)oductio " $ales "= ;G 0 C 2,000 " 1,#00 = 600 allos ;di ieto) ieto) = 600 x P20 = P12,000/
Proble' 147$ 1.
Allo llocation o+ o oint Co Costs o+ o+ P! P!%%%%%.
a.
&ales les 3alue at splito++ point int 'ethod Narra A
$ales alue at s&lito'': (30,000 x P! (50,000 x P# (20,000 x P3 Ratio: (2#0/500K (200/500K (60/500 Allocated oit costs, (#!%K#0%K12% *otal costs: -o -oit costs $e&a)a8le &)ocessi costs *otal costs iided 8 total &)oductio 9ost &e) 8oa)d 'oot
Narra B
P2#0,000
Narra C
#!% P1##,000
#0% P120,000
P60,000 12% P36,000
P1##,000 60,000 P20#,000 I 25,000 P !.16
P120,000 +0,000 P210,000 I #0,000 P 5.25
P36,000 15,000 P51,000 I15,000 P 3.#0
P200,000
Total
P500,000 P300,000 P300,000 165,000 P#65,000
11
Problem 1-& !continued" b.
Phsical7'easures 'ethod Narra A 30,000 30%
Narra B 50,000 50%
Narra C 20,000 20%
Total 100,000
P +0,0 +0,00 00
P150, 150,0 000
P60,0 60,000 00
P300, 300,00 000 0
P +0,000 60,000 P150,000 25,000 P 6.00
P150,000 +0,000 P2#0,000 #0,000 P 6.00
P60,000 15,000 P75,000 15,000 P 5.00
P300,000 165,000 P#65,000
Narra A
Narra B
Narra C
Total
P)oductio (8oa)d 'eet Ratio: (30/100K 50/100K 20/100 Allocated oit costs: (30% 30%, 50% 50%, 20% 20% x P300 300,000 ,000 *otal costs co&utatio: -oit costs $e&a)a8le &)ocessi costs *otal costs *otal 8oa)d 'eet 9ost &e) 8oa)d 'oot
c.
9et reali=able 3alue 'ethod Fial sales alue: (25,000 x P16 (#0,000 x P + (15, (15,00 000 0 x P 7 ess se&a)a8le costs
2. $ales alue at s&lito'': P!.16 x 1,000 P5.25 x 2,000 P3.#0 x 500 P?sical easu)es: P6.00 x 1,000 P6.00 x 2,000 P5 P5.00 x 500 ;stiated
P#00,000 P360,000
60,000 P3#0,000
+0,000 P270,000
P105 P105,0 ,000 00 15,000 P +0,000
0.#! 0.#!57 57
0.3! 0.3!57 57
0.12 0.12!6 !6
P1#5,000 P115,710
P 3!,5!0
P!65 P!65,0 ,000 00 165,000 P700,000
P300,000
P1#5,000 60,000 P205,710 I 25,000 P +.23
P115,710 +0,000 P205,710 I #0,000 P 5.1#
P 3!,5!0 15,000 P 53,5!0 I 15,000 P 3.57
Narra A
Narra B
Narra C
Total
P10,500
P1,700
P20,360
2,500
20,500
1,7!5
20,2+5
P
!,160
6,000 12,000
!,230 10,2!0
P300,000 165,000 P#65,000
12
Proble' 1476
1a.
&ales les 3a 3alue at at sp split%++ 'e 'ethod5 'ar(-Chocolate Po)d Po )der er
$ales alue at s&lito'': 200L x P21 30 300LL x P26 Ratio: P#,200/P12,000 P7,!00/P12,000 Allocated oit costs: 35% x P10,000 65% x P10,000
Mil(-Chocolate Po)d Po )der er
Total Tota l
P#,200 P7,!00
P12,000
35% 65% 3,500 6,500
P10,000
L (2,000/200 x 20 LL(3,#00/3#0 x 30
1b.
Phsical7'easure 'ethod5 'ar(-Chocolate Po)der
allos: 10 x 20 allos 10 x 30 allos Ratio: 200/500 300/500 Allocated oit costs: .#0 x P10,000 .60 x P10,000
1c.
200 allos
Mil(-Chocolate Po)der
300 allos
Total
500 allos
#0% 60% P#,000
P 6,000
P10,000
9et reali=able 3alue lue 'ethod5 'ar(-Chocolate Po)der
Fial sales alue: 2,000 x P# 3,#00 x P5 ess ess se&a se&a))a8le a8le cost costss
P!,000 #,250 ,250 P3,750
Mil(-Chocolate Po)der
P17,000 !,75 !,750 0 P !,250
Total
P25,000 13,0 13,00 00 P12,000
31.25% 6!.75% P3,125 P 6,!75
P10,000
13
Problem 1-* !continued" +#
a.
8.
c.
Reeues -oit costs $e&a)a8le costs *otal costs )oss a)i
'ar(-Chocolate Po)der Po)d er P!,000 3,500 #,250 7,250 P 250
Mil(-Chocolate Po)der Po)d er Total P17,000 P25,000 6,500 10,000 !,750 13,000 15,250 23,000 P 1,750P 2,000
)oss"a)i %
3.125%
10.2+#%
Reeues -oit costs $e&a)a8le costs *otal costs )oss a)i (loss
P!,000 #,000 #,250 !,250 P(250
P17,000 P25,000 6,000 10,000 !,750 13,000 1#,750 P23,000 P 2,250P 2,000 13.235%
!%
)oss"a)i %
(3.125%
!%
Reeues -oit costs $e&a)a8le costs *otal costs )oss a)i
P!,000 3,125 #,250 7,375 P 625
P17,000 P25,000 6,!75 10,000 !,750 13,000 15,625 23,000 P 1,375P 2,000
)oss"a)i %
7.!12%
!.0!!%
!%
Proble' 147 1.
'ay 1 $elli &)ice Allocated oit costs @&e)ati icoe (loss
Por( Chops P120 #5 P 75 P 75
'ay + $elli &)ice Allocated oit costs @&e)ati icoe
P120.00 112.50 P 7.50
'ay $elli &)ice Allocated oit costs @&e)ati icoe
P 120.00 300.00 P(1!0.00
'ay The butcher loses P..#
,am Bacon P150 P1## 75 1!0 P(3! P11#
Total P#1# 300
P150.00 1!7.50 P(37.50
"
P270.00 300.00 P(30.00
"
P 120.00 300.00 P(1!0.00
"
1#
Problem 1-/ !continued" Sales Value Value at Splitoff P120 150 1## P#1#
2. Product Po)k c?o&s Ma Baco
Allocated 0oint Costs P !6.+7 10!.6+ 10#.3# P300.00
Ratio 2!.++% 36.23% 3#.7!% 100.00%
)>ss cotex cotext, t, t?e )elea )eleat t costs Hould 8e t?e additioal tie ad ot?e) icidetals to take eac? &i &a)t ad ake it a sala8le &)oduct. *?e )eleat )eeues Hould 8e t?e di''e)eces 8etHee t?e selli &)ice at t?e cosue) leel 'o) t?e &i &a)ts ad H?at t?e 8utc?e) a )eceie 'o) t?e H?ole &i.
Proble' 147" 1.
Fo) t?e ot? o' a a 2010, P)ice 9o)&o)atio>s out&ut Has:
A&&le slices A&&lesauce A&&le uice Aial 'eed
!+,100 !1,000 67,500 27,000
*?ese He)e co&uted as 'olloHs: Product $lices $auce -uice Feed
2nput 270,000 kilos 270,000 270,000 270,000
L
= = =
Proportion 0.33 0.30 0.27 0.10 1.00
ilos
Net
ilos !+,100 !1,000 72,+00 27,000 270,000
3ost " " 5,#00 " 5,#00
ilos !+,100 !1,000 67,500L 27,000 26#,600
72,+00 (0.0! x et kilos 72,+00 67,500
+# Product $lices $auce -uice
Total
4inal Sales Value P 71,2!0 ##,550 27,000 P1#2,!30
Net Separable Reali%able Costs Value P11,2!0 P 60,000 !,550 36,000 3,000 2#,000 P22,!30 P120,000
15
Problem 1-5 !continued" !.
*?e et )ealia8le alue o' t?e 8&)oduct is deducted ')o t?e &)oductio costs &)io) to allocatio to t?e oit &)oducts, as &)eseted 8eloH: Allocatio o' 9utti e&a)tet costs to oit &)oducts ad 8&)oducts:
= = =
B&)oduct sales alue se&a)a8le costs P0.10 (27,000 kilos P700 P2,000
9osts to 8e allocated
= = =
-oit costs
4 # Product $lices $auce -uice
Sales Value P 71,2!0 ##,550 27,000 P1#2,!30
Separable 0oint 6ross Costs Costs7 Mar$in P11,2!0P2+,000 P31,000 !,550 17,#00 1!,600 3,000 11,600 12,#00 P22,!30 P5!,000 P62,000
LAllocated usi
Proble' 147# Ri%al Corporation 2ncome Statement 'ate
$ales: ai &)oduct B"&)oduct 9ost o' oods sold: P)oductio costs: ai &)oduct (sc?edule 1 P#7!,750 B"&)oduct (sc?edule 2 21,250 ess edi ieto) o' ai &)oduct: (P#7!,750/312,500 x 17,000 )oss &)o'it @&e)ati ex&eses: $elli ex&eses: ai &)oduct B"&)oduct
P+16,050 25,000
P+#1,050
500,000 26,0##
P73,#26 5,37#
#73,+56 #67,0+#
7!,!00 P3!!,2+#
16
Problem 1-8 !continued" &chedule 15 Production cost cost o+ 'ain product product
*otal otal &)o &)oduc ductio tio cost costs: s: 4P50 4P500 0,00 ,000 (2.5 (2.5% % x P500 P500,0 ,000 00 ess cost o' 8"&)oduct ()ee)sal cost et?od: $ales alue P 25,000 Fu)t?e) &)ocessi cost (2.5% x P500,00 (12,500 ;x&e ;x&ect cted ed )os )osss &)o' &)o'it it (15% (15% x P25, P25,00 000 0 ( 3,75 3,750 0 P)oductio cost o' ai &)oduct
P#!7 P#!7,5 ,50 00
!,75 !,750 0 P#7!,750
&chedule 25 Production cost o+ b7product b7product
-oit cost a&&lica8le to 8"&)oduct Fu)t?e) &)ocessi costs P)oductio cost o' 8"&)oduct
P
!,750 12,500 P 21,250
Proble' Proble ' 1471% a.
b.
56,000 allos o' out&ut i e&t. 1: *)as'e))ed to e&t. 2 (30% *)as'e))ed to e&t. 3 (70%
16,!00 allos 3+,200 allos
3+,200 allos o' i&ut to e&t. 3: Pul& (20% -ell (!0%
7,!#0 allos 31,360 allos
c.
$ales alue (7,!#0 x P0.#0 ist)i8utio ex&eses
d #
0oint Product -uice -ell
6allons 16,!00 31,360
P3,136 550 P2,5!6
Sales Price P26.25 17.25
Total Sales P##1,000 5#0,+60
Separate Costs P# P#!,100 2+.66#L
LP32,250 " P2,5!6 e #
0oint Product -uice -ell
NRV P3+3,#00 511,2+6 P+0#,6+6
Ratio #3% 57 100%
0oint Cost7 P167,#!5 222,015 P3!+,500
L *otal oit cost: P221,000 C 16!,500 = P3!+,500
+.
-uice: (P167,#!5 C P#!,100 x 15% -ell: (P222,015 C P2+,66# x 15%
= =
P32,33! 37.752
NRV P3 P3+3.#00 511,2+6
17
Proble' 14711
1.
Co'putation o+ o+ Co Cost o+ o+ - -7Product
;stiated sales &)ice (600 uits x P1#0 ;sti ;stia ate ted d sell selli i ad ad adi adii ist st)a )ati tie e ex&e ex&es ses es (P10 (P10 x 600 600 ;stiated o)al et &)o'it (!% o' sales *otal estiated au'actu)i cost ;stiated 'u)t?e) &)ocessi costs: ate)ials (300 uits x P50 P15,000 a8o) (600 uits x P10 6,000 @e)?ead (600 uits x P15 +,000 ;stiated au'actu)i cost 8e'o)e se&a)atio
2.
P!#,000 ( 6,00 6,000 0 ( 6, 6,720 P71,2!0
(30,000 P#1,2!0
Mach Macho o Man Manu+ u+ac actu turi rin n Co'p Co'pan an – >ini >inish shin in :epa :epart rt'e 'ent nt Cost o+ Production Report Month o+ une 2%1% 9uantity Schedule *)as'e))ed G ')o &)io) de&a)tet
:nits #,000
*)as'e))ed @ut to 'iis?ed oods B"P)oduct )ecoe)ed *otal accouted 'o)
3,700 300 #,000
Cost Schedule 9ost t)as'e s'e))ed i ')o &)io) de&t. 9ost added i t?is de&a)tet: a8o) @e)?ead *otal costs to accout 'o)
Total Cost P +5# +5#,600
55,500 66,600 P1,076,700
9ost accouted 'o): P)odu P)oduct ctio io co& co&le lete ted d i cu)) cu))e ett ot? ot? P1,0 P1,076 76,7 ,700 00 ess ess alu aluee o' 8"& 8"&)o )odu duct ct )eco )ecoe e)e )ed d #1,2 #1,2!0 !0 Adusted cost o' ai &)oduct *)a )as'e) s'e))e )ed d out out to 'ii 'iis? s?ed ed ood oodss 1,03 1,035 5,#20 ,#20 9ost o' 8"&)oduct #1,2!0 *otal costs accouted 'o) P1,076,700
I
;:P 3,700
:nit Cost P25!.00
=
I I
3,700 3,700
= =
15.00 1!.00 P2+1.00
= I
3,70 3,700 0 3,70 3,700 0
= =
P2+1 P2+1.0 .00 0 11.16 1.16
I
3,70 3,700 0
=
27+. 27+.!# !#
