1. Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into...
Question:
1. Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light beer, dark beer, and an impure byproduct. There were no beginning inventories or work-in-process in December. The production costs of Red Horse, Inc. for December are presented below:
Costs:
Materials acquired and placed in productionP 5,000,000
Direct labor2,000,000
Factory overhead3,000,000
Production and sales information:
a.Light beer 300,000 cases produced; 80,000 cases sold at P 20 each.
b.Dark beer 240,000 cases produced; 120,000 cases sold at P 15 each.
c.Impure byproduct 120,000 cases produced and sold at P 15 each.
The portion of joint production costs assigned to dark beer based on the physical output would be:
a.P 7,500,000
b.P 3,750,000
c.P 3,636,000
d.P 1,818,000
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ