Finland Company Finland Company produces three joint products: A, B, and from the same process

Accounting Jan 20, 2021

Finland Company Finland Company produces three joint products: A, B, and from the same process. Joint costs for this production run are P210,000, Sales price per lb. at split-off P65.00 82.50 80.00 Pounds 875 1,050 1,575 Further processing per pound P20.00 30.00 35.00 Final sales price per pound P75.00 100.00 105.00 A B C ? Refer to Finland Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A?* Your answer Refer to Finland Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B?*

Expert Solution

Product A based on phsyical Units ie 210,000*875/(875+1050+1575) = $ 52500

Computation of Sales value at split off
A	875*65 =	56,875
B	1050*82.50 =	86,625
C	1575*80 =	126000
		269500

Thus, Product B = 210,000*86625/269500 = $ 67,500

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