La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materials - P4, 000; Labor - P3, 000; Overhead- P2, 000

	Barrels	Sales price per barrel at split- off	Disposal cost per barrel at split- off	Further processing costs	Final sales price per barrel
Wan	750	P10	P6.50	P2.00	P13.50
Tu	1, 000	8	4.00	2.50	10.00
Tri	4, 000	11	7.00	4.00	15.50
Por	2, 000	15	9.50	4.50	19.50

If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.00. (Round all answers to the nearest peso)

Using net realizable value at split- off, what amount of joint processing cost is allocated to Product Tri?

Atlantis Company is placing an ad in the local paper to advertise its products. The ad will run for one week at a total cost of P5, 500. Atlantis Company has four categories of products as follows:

Product category	% of floor space occupied	Expected sales value
A	20	P35,000
B	15	15,000
C	45	64,500
D	20	25,500

What amount of advertising cost should be allocated to product category B, assuming Atlantis allocates based on percent of floor space occupied?

Answer rating: 100% (QA)

Joint production costs are Materials P4000 Labor P3000 Overhead P2000 Total joint cost... View the full answer