Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on
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Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs P4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is P10 per gallon for Product A and P14 for Product B. Product B requires an additional process beyond split-off at a cost of P2 per gallon before it can be sold. What is Idaho's cost to produce 1,000 gallons of Product B?
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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