1. Paz Manufacturing Company manufactures three products: A and B were considered main products and C was a by-product. The joint cost was P276,600. It was company policy to allocate the joint cost using the net realizable value method and the net realizable value of the by-product was accounted for using the realizable value method. The following data was given:

Product	Production (pounds)	sale price per pound	separable costs
A	220,000	P6.00	320,000 pesos
B	180.000	P3.00	190,000 pesos
C	50,000	P0.90	6900 pesos

1. What is the gross profit / (gross loss) generated by Product A?

Answer rating: 100% (QA)

Step 1 Calculate the net realizable value of Product A Net realizable value of Product A Sale price ... View the full answer