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Talisay Company is conducting a joint production at a total costs of P1,000,000. The joint production results to the following inventories:
Alt Tab DelUnits produced 20,000 units 10,000 units 5,000 unitsSelling price at split off P300 P400 P10 Alt and Tab are considered main products while Del is considered by-product. The entity considers its by-product as material. The by-product requires additional processing cost per unit of P1.6 and its cost of disposal is P0.40 per unit.
Problem 1: What is the joint cost allocated to product Tab if the entity employs relative sales value method?
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