Joan Co. manufactures two joint products (Ralin and Stalin). Joie produced 12,000 units of Ralin with an after split-off sales value, of P45,000. However, if Ralin were to be processed further, additional costof P6,000 will be incurred but the sale value will increase to P60,000. Joie produced 6,000 units of Stalin with an after split-off sales value of P30,000.However, if Stalin were to be further processed, additional cost of P3,000 will be incurred but the sale value will go up to P36,000. Under the relative sales value at split-off approach, theallocation to Ralin from total product cost is P27,000. What is the total product cost?

Answer rating: 100% (QA)

To calculate the total product cost we need to determine the cost of producing both Ralin and Stalin ... View the full answer