Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In...

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Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Production Copra 1,200 tons Sales 1,200 tons Sales Price per Ton P50 per ton Vinegar 800 tons Alcohol 500 tons 500 tons P200 per ton All 800 tons of vinegar were further processed, at an incremental cost of P20,000, to yield 500 tons of alcohol. There were no beginning or ending inventories of copra, vinegar, or alcohol in July. There is an active market for vinegar. Bulacan Products could have sold all of its July production of vinegar at P75 a ton. Requirement with necessary solution: 1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sales value at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Value (NRV) method. Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Production Copra 1,200 tons Sales 1,200 tons Sales Price per Ton P50 per ton Vinegar 800 tons Alcohol 500 tons 500 tons P200 per ton All 800 tons of vinegar were further processed, at an incremental cost of P20,000, to yield 500 tons of alcohol. There were no beginning or ending inventories of copra, vinegar, or alcohol in July. There is an active market for vinegar. Bulacan Products could have sold all of its July production of vinegar at P75 a ton. Requirement with necessary solution: 1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sales value at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Value (NRV) method.