Under the current method, the total costs ending inventories (Alpha 1 and Alpha 2) are:

OAP Philippines is drug manufacturer that produces two main products, Alpha1 and Alpha 2, and a by-product Alpha 3 from a joint process. The by-product is inventoried at its net revenue and it is treated as other revenue. The company uses the market value method of allocating joint costs; however, the company is considering adopting other methods next year. At present, no additional processing is done because the company is satisfied with the current gross profit contribution of the two main products. The FIFO inventory method is used to cost the main products. The joint cost of production amounts to P 2,664,000 for October. Marketing costs of PO. 15 per gallon will be incurred to sell the by-product. . Data describing operations during October follow: Main Products By- Product Finished goods inventory in gallons Oct. 1 October Sales in gallons Ending inventory in gallons Sales value per gallon at split off Additional processing per unit if process further Final sales value per gallons Aplha1 20,000 800,000 120,000 P 5.00 2.00 Alpha 2 40,000 700,000 60,000 P3.00 1.00 Alpha 3 10,000 200,000 50,000 P.55 8.00 6.00 OAP Philippines is drug manufacturer that produces two main products, Alpha1 and Alpha 2, and a by-product Alpha 3 from a joint process. The by-product is inventoried at its net revenue and it is treated as other revenue. The company uses the market value method of allocating joint costs; however, the company is considering adopting other methods next year. At present, no additional processing is done because the company is satisfied with the current gross profit contribution of the two main products. The FIFO inventory method is used to cost the main products. The joint cost of production amounts to P 2,664,000 for October. Marketing costs of PO. 15 per gallon will be incurred to sell the by-product. . Data describing operations during October follow: Main Products By- Product Finished goods inventory in gallons Oct. 1 October Sales in gallons Ending inventory in gallons Sales value per gallon at split off Additional processing per unit if process further Final sales value per gallons Aplha1 20,000 800,000 120,000 P 5.00 2.00 Alpha 2 40,000 700,000 60,000 P3.00 1.00 Alpha 3 10,000 200,000 50,000 P.55 8.00 6.00