Question: Odette Company makes two products from a common input. Joint processing costs up to the split-off point total P64,800 a year. The company allocates these

Odette Company makes two products from a common input. Joint processing costs up to the split-off point total P64,800 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

Product X Product Y Total

Allocated joint processing costs............ P32,400 P32,400 P64,800

Sales value at split-off point.................. P36,000 P36,000 P72,000

Costs of further processing ................... P20,300 P14,300 P34,600

Sales value after further processing ..... P55,400 P53,000 P108,400

Required:

13. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

14. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

15. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

16. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

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