0 Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $190,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product Sales Value at Split-Off $ 228,000 1 2 3 95,000 57,000 $ 380,000 Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Allocated Joint Cost $ Units at Split-Off 740 0 1,295 1,665 3,700
0 Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $190,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product Sales Value at Split-Off $ 228,000 1 2 3 95,000 57,000 $ 380,000 Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Allocated Joint Cost $ Units at Split-Off 740 0 1,295 1,665 3,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![!
Required information
[The following information applies to the questions displayed below.]
The following information relates to a joint production process for three products, with a total joint
production cost of $190,000. There are no separable processing costs for any of the three
products.
Product
1
2
3
Sales Value at
Split-Off
$ 228,000
Product
1
2
3
95,000
57,000
$ 380,000
Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales
value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm
treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount
of joint cost would be allocated to the products using the sales value at split-off method?
Allocated Joint
Cost
$
Units at
Split-Off
740
0
1,295
1,665
3,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ea8affe-4b2e-48c3-8486-68062a285f06%2F587cd2f7-45de-4c78-8533-53606effc804%2F3dew34_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The following information relates to a joint production process for three products, with a total joint
production cost of $190,000. There are no separable processing costs for any of the three
products.
Product
1
2
3
Sales Value at
Split-Off
$ 228,000
Product
1
2
3
95,000
57,000
$ 380,000
Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales
value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm
treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount
of joint cost would be allocated to the products using the sales value at split-off method?
Allocated Joint
Cost
$
Units at
Split-Off
740
0
1,295
1,665
3,700
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