Joint and By-Product Costing STRAIGHT PROBLEMS Problem 1: Joint Cost Allocation The Culture Club Corporation manufactures two products O and P in a joint process. In December, P400,000 of direct materials were processed at a conversion cost of P600,000, resulting in 32,000 units of O and 8,000 units of P. Product O sells for P35 per unit and product P sells for P60 per unit. The management generally processes each of these products further in a separable cost of P7.50 per unit, with the resulting product O, selling for P45 per pound. Product P is processed separately at a cost of P10 per unit, and sells for P100 per unit. Required: 1. Compute the company's total joint costs. 2. Allocate the joint costs using: a. Physical-units method b. Sale Value at split-off method C. Approximated Net realizable value method