CHAPTER-14 Cost10
CHAPTER-14 Cost10
CHAPTER-14 Cost10
Problem 14-4
1. a. Recognized b. Recognized
at Production at Sale
Revenues:
Main Product P1,600,000 (a) P1,600,000
By-product 0 28,000 (d)
Total revenues 1,600,000 1,628,000
Cost of goods sold:
Manufacturing costs 1,200,000 1,200,000
Less by-product revenue 40,000 (b) 0
Net manufacturing costs 1,160,000 1,200,000
Less main product inventory 232,000 (c) 240,000 (e)
Cost of goods sold 928,000 960,000
Gross profit P 672,000 P 668,000
2. Recognized Recognized
at production at Sale
Coke P232,000 P240,000
Pepse 12,000 (a) 0
BI + Production - Sales -= EI
0 + 2,000 - 1,400 = 600 gallons
Problem 14-5