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    Finals Quiz No 2

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    Hello PM
    1. This document contains 6 practice problems related to allocating joint costs between products using different allocation methods. It provides production data like units produced, sales values, and costs. Learners must use the allocation methods and data to calculate values like joint costs allocated to each product. 2. The problems involve companies that make multiple products and require calculating values like net income for different products, joint costs allocated using specific methods, and gains or losses from by-product sales. 3. Formulas and concepts from cost accounting like joint cost allocation methods, net realizable value, and by-product accounting are tested through numerical problems requiring calculations and rounding to two decimal places.

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    Finals Quiz No 2

    Uploaded by

    Hello PM
    38 views2 pages
    1. This document contains 6 practice problems related to allocating joint costs between products using different allocation methods. It provides production data like units produced, sales values, and costs. Learners must use the allocation methods and data to calculate values like joint costs allocated to each product. 2. The problems involve companies that make multiple products and require calculating values like net income for different products, joint costs allocated using specific methods, and gains or losses from by-product sales. 3. Formulas and concepts from cost accounting like joint cost allocation methods, net realizable value, and by-product accounting are tested through numerical problems requiring calculations and rounding to two decimal places.

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    1. This document contains 6 practice problems related to allocating joint costs between products using different allocation methods. It provides production data like units produced, sales values, and costs. Learners must use the allocation methods and data to calculate values like joint costs allocated to each product. 2. The problems involve companies that make multiple products and require calculating values like net income for different products, joint costs allocated using specific methods, and gains or losses from by-product sales. 3. Formulas and concepts from cost accounting like joint cost allocation methods, net realizable value, and by-product accounting are tested through numerical problems requiring calculations and rounding to two decimal places.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    38 views2 pages

    Finals Quiz No 2

    Uploaded by

    Hello PM
    1. This document contains 6 practice problems related to allocating joint costs between products using different allocation methods. It provides production data like units produced, sales values, and costs. Learners must use the allocation methods and data to calculate values like joint costs allocated to each product. 2. The problems involve companies that make multiple products and require calculating values like net income for different products, joint costs allocated using specific methods, and gains or losses from by-product sales. 3. Formulas and concepts from cost accounting like joint cost allocation methods, net realizable value, and by-product accounting are tested through numerical problems requiring calculations and rounding to two decimal places.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Finals Quiz No.

    I. Problem solving. Round off cost per equivalent unit and final answers to two decimal places.

    1. KINAYA MO YAN Company manufactures three main products, AA, BB, and CC from a joint
    process. Additional data for May production activity follows:
    AA BB CC
    Units produced 30,000 45,000 25,000
    Joint costs – 500,000
    Sales value @ split off 70,000 75,000 55,000
    Additional processing cost 12,000 15,000 15,000
    Sales value if processed further 95,000 97,000 100,000

    a. What is the joint cost allocated to product AA using physical measures method?
    b. What is the joint cost allocated to product BB using sales value at split off method?
    c. What is the joint cost allocated to product CC using adjusted sales value method?

    2. KINAKAYA MO YAN Company manufactures one main product and two by-products. Data for
    May are:
    Main BP – X BP – Y
    Sales Php 120,000 Php 15,000 Php 8,000
    Cost after separation 20,000 2,500 1,500
    Selling cost 13,000 1,200 1,100

    Total joint costs before separation is Php 80,000. Profit allowed for by-product X is 15% of sales
    and for by-product Y is 20% of sales.

    a. What is the net income from the sales of the main product?
    b. What is the net income for the two by-products?

    3. KAKAYANIN MO YAN Company uses the net realizable method to account for its by-product. The
    information below relates to KAKAYANIN MO YAN Company’s main product and by-product for
    the current period:
    Units Main Product By-Product
    Produced 20,000 4,000
    Sold 16,000 2,500
    Ending inventory 4,000 500

    Actual sales revenue of the main product (16,000 units x Php 3 per unit) equals Php 48,000 and
    the by-product @ Php 1.50 per unit. Total production costs equal Php 40,000. Additional by-
    product processing costs (not included in total production estimates are Php 300). The estimated
    marketing and administrative expenses for the main product and for the by-product are Php
    4,200 and Php 800, respectively. What is the company’s net income?
    4. KAKAYANIN NGA BA Company produces tea bags. As part of the production process, the tea
    leaves are separated from the stalks and stems. The tea leaves are sold as the main product,
    while the stalks and stems are sold as the by-product. During May, the company processed
    25,000 boxes of tea bags at a unit cost of Php 0.75. Beginning inventory consisted of 2,000 boxes
    at a unit cost of Php 0.70 per box. During May, 20,000 boxes were sold for Php 1.75 each. The
    company also sold 500 units of stalks and stems at Php 980. Selling expenses amounted to Php
    12,000. The net revenue from by-product sales is deducted from the production costs. What is
    the net income of KAKAYANIN NGA BA Company for the month of May?

    5. In the third department of KAKAYANIN PA BA Company, a portion of the materials (a by-product)


    is removed, further processed, and sol. The company uses reversal cost method to account for
    the by-product. Data for May follow:

    Amount of by-product removed, 2,000 units


    Estimated sales price of by-product after further processing, Php 1.20/unit
    Estimated processing cost after separation, Php 0.30/unit
    Estimated selling expenses, 10% of sales price
    Estimated normal profit margin, 5% of sales price

    a. What is the total cost of the by-product?


    b. What is the gain (or loss) on sale of by-product if all the units are sold at Php 1.50?

    6. KINAKAYA PA BA Company manufactures two joint products. Product one sells at Php 30 per
    unit, while product two sells at Php 60 per unit. The company uses the net realizable value
    method for allocating joint costs. For the month of May, the production activities were as
    follows:

    Joint production costs Php 55,000


    Further processing costs after split off:
    Product one Php 34,000
    Product two Php 36,000
    Number of units produced:
    Product one 2,000 units
    Product two 1,000 units

    What was the joint cost allocated to product one?

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