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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The joint costs allocated to product Y were
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: DF1 DF2 BP Total Units produced 27,100 18,100 15,100 60,300 Allocated joint costs ? ? ? $ 560,100 Sales value at split-off $ 561,750 $ 187,250 $ 102,100 $ 851,100 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP?
6. Show your solution in good accounting form
None
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: DF1 DF2 BP Total Units produced 27,000 18,000 15,000 60,000 Allocated joint costs ? ? ? $ 560,000 Sales value at split-off $ 561,000 $ 187,000 $ 102,000 $ 850,000 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP?
Exercise 11-47 (Algo) Net Realizable Value Method with By-Products (LO 11-7, 10) Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for the revenues from its by-product sales as other income. Additional information follows: M1 24,400 ? M2 13,800 ? Joint cost of product M1 B1 9,600 ? Units produced Allocated joint costs Sales value at split-off $378,000 $252,000 $96,000 Total 47,800 $352,000 $726,000 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product M1? (Do not round intermediate calculations.)
17 oints Split Corporation manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: Units produced Allocated joint costs Sales value at split-off 01:39:59 Sales value if processed further Additional costs for further processing Product X's sales value at the split-off point is: 26,000 $ 161,280 Z Total 22,000 $ 108,000 18,000 $180,000 66,000 $449,280 ? 150,000 66,000 250,000 624,000 46,000 186,000 341,000 279,000 1,268,000 74,000 648,000 0 Multiple Choice $156,000. $19,000. $190,000 $224,000 $117,000.
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