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Quiz 11 Joint Product and by Product

This document provides information for a quiz on joint product and by-product costing for BSA Company. BSA manufactures joint products Tat, Su, and Lok, and by-products Kan and To from a total joint manufacturing cost of P100,000. Information is provided on units produced and sold, split-off market values, further processing costs, selling and administrative expenses, and final market values for each product. Students are asked to prepare income statements and determine unit costs using both the net realizable value and reversal cost methods of allocating joint costs to the by-products. Honesty is emphasized as the best policy for the quiz.

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103 views1 page

Quiz 11 Joint Product and by Product

This document provides information for a quiz on joint product and by-product costing for BSA Company. BSA manufactures joint products Tat, Su, and Lok, and by-products Kan and To from a total joint manufacturing cost of P100,000. Information is provided on units produced and sold, split-off market values, further processing costs, selling and administrative expenses, and final market values for each product. Students are asked to prepare income statements and determine unit costs using both the net realizable value and reversal cost methods of allocating joint costs to the by-products. Honesty is emphasized as the best policy for the quiz.

Uploaded by

lena cpa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Philippines

BULACAN STATE UNIVERSITY


COLLEGE OF BUSINESS ADMINISTRATION
City of Malolos, Bulacan
Telephone Number : 7964131 or 919-7800 loc 1058, 1057
Webpage: www.bulsu.edu.ph

Cost Accounting
Quiz 11 Joint Product and By-Product

Name______________________________________________ BSA/BSAT ____ May ____, 2019

Only black and/or blue ink ballpen are allowed to use. Use of pencils, friction pens and
correction tape/liquid are not allowed.

BSA Company, a manufacturing entity, manufactures joint products Tat, Su, and Lok, and by-
products Kan and To. Joint costs are assigned to the joint products using the net realizable value
(considering final market value after deducting further processing costs and selling and administrative
expenses). Total joint manufacturing cost was P100,000 during April, 2019. Other information are as
follows:

Tat Su Lok BP-Kan BP-To


Units Produced 13,000 9,000 8,000 2,000 1,000
Units Sold 10,000 7,000 7,000 2,000 1,000
MV at Split-Off Php 6.00 Php 12.00 Php 20.00 Php 1.75 Php 1.50
Further
Processing
Cost per unit Php 8.00 Php 7.00 Php 5.00 Php 0.50 Php 0.60
Selling &
administrative
expense per Php 5.00 Php 4.00 Php 3.00 Php 0.50 Php 0.60
unit
Final
Market Value Php 20.00 Php 25.00 Php 30.00 P3.00 Php 4.00
Desired Profit Php 2,000 Php 2,300

Required:

1. Using the net realizable value in allocating joint cost to the by-products,
a. prepare a detailed income statement showing the net profit per product. (10 points)
b. determine the unit costs of main products and by-products (5 points)

2. Using the reversal cost method in allocating joint cost to the by-products,
a. prepare a detailed income statement showing the net profit per product. (10 points)
b. determine the unit costs of main products and by-products (5 points)

End of the Quiz. Good Luck! Reminder: Honesty is the best policy!

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