3) Alpha Inc
Subject:FinancePrice: Bought3
3) Alpha Inc. and Beta Inc. agreed to jointly produce a product. Alpha is responsible for completing stage 1 at its current facilities. Cost is P60 (50% materials, 30% direct labor) per unit. Once the stage 1 is completed, Alpha transfers the work-in-process to Beta who completes stage 2 of the manufacturing process at its own facilities for P40 (40% materials, 40% direct labor) per unit, before selling it to customers for P150/unit. The parties agree that Alpha will receive 60% of the proceeds from the sale of the product. For 2019, Alpha finished 1,000 units & transferred 800 to Beta, which in turn completed 50% of these and sold 80% of it for cash. Required: Prepare all indicated entries in the books of Alpha and Beta, respectively.
