Atlas Foods produces three supplemental food products simultaneously through a refining process costing P93,000. The joint products,
Question:
Atlas Foods produces three supplemental food products simultaneously through a refining process costing P93,000. The joint products, Alfa and Betters, have a final selling price of P4 per pound and P10 per pound, respectively, after additional processing costs of P2 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split-off point for P3 per pound. Additional information are as follows:
Alfa - 10,000 pounds of Alfa, a popular but relatively rare grain supplement of having a caloric value of 4,400 calories/pound.
Betters - 5,000 pounds of Betters, a flavouring material high in carbohydrates with a caloric value of 11,200 calories/pound.
Morefeed - 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories/pound.
Questions:
1.Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using the NRV method is?
2.Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using physical quantity method (pounds) is?
3.Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Betters, using caloric value per pound is?
4.Assuming Atlas Food does not adjust the joint cost for the value of Morefeed, the by-product, the joint cost to be allocated to Betters, using the NRV method is?