Reference no: EM132561045

MIX Inc. is conducting a joint process with results to three products. The following production data were provided by MIX Inc. for the current period:

Product name                     Units produced                       Selling price produced at split off point

Ace                                        10,000                                    40

Bat                                             15,000                               20

Can                                               25,000                             12

Additional data for the period provided:

All the Ace items were sold for a gross profit of P100,000

The total cost is allocated using physical method

Question 1: What is the gross profit/(loss) if all the Bat items are sold in the current year?

Option 1: 200,000

Option 2: (150,000)

Option 3: (100,000)

Option 4: 50,000

Question 2: Assuming the joint costs are fixed, what is the joint cost allocated a Can items using the revenue sales value method?

Option 1: 250,000

Option 2: 450,000

Option 3: 750,000

Option 4: 300,000