1.Big Mom Company produced three output (1, 2, 3) from one input. Joint processing costs are P 200,000. Output 3 can be sold at split-off for P 12,000. After further processing, 75,000 units of output 1 are sold P250,000, and 65,000 units of output 2 are sold at P175,000. Additional processing costs are P 25,000 for output 1 and P20,000 for output 2. Big Mom uses the net realizable sales method to allocate the joint cost. If output 3 is treated as a by-product, it would be credited to joint manufacturing costs.

Determine the joint cost allocation to 3, if 3 is treated as a by-product.

Determine the joint cost allocation to 1, if 3 is treated as a main product.

Determine the joint cost allocation to 2, if 3 is treated as a main product.

Determine the joint cost allocation to 2, if 3 is treated as a by-product

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To solve this problem we need to follow the steps for joint cost allocation using the net realizable ... View the full answer