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What the total production cost assigned for product A

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    Assignment ID: FG133051105

    Question – Debbie Manufacturing Company makes three products: A and B are considered main products and C a by-product. Production and sales for the year are:

    220,000 lbs. of Product A. salable at P6.00

    180,000 lbs. of Product B, salable at P3.00

    50,000 lbs. of Product C, salable at P.90

    Production costs for the year are:

    Joint costs P281,100

    Costs after separation:

    Product A 320,000

    Product B 190,000

    Product C 6,900

    The by-product revenue is a reduction from joint costs and the net realizable value method is used in allocating the joint costs. C is a by- product of the process. What the total production cost assigned for product A?

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