1 2 Marigold produces four kinds of ice cream from a single process. The total joint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons of strawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan ice cream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the other three flavours are sold for $3.50 per gallon. How much of the joint cost will be allocated to each product, if the sales value at split-off method is used? Davis Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for November: Molding Grinding Finishing Direct materials $143,300 $15,700 $10,200 Direct labor 13,600 34,200 22,800 19,400 Applied overhead 17,000 135,900 During November, 8,800 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost.
1 2 Marigold produces four kinds of ice cream from a single process. The total joint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons of strawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan ice cream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the other three flavours are sold for $3.50 per gallon. How much of the joint cost will be allocated to each product, if the sales value at split-off method is used? Davis Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for November: Molding Grinding Finishing Direct materials $143,300 $15,700 $10,200 Direct labor 13,600 34,200 22,800 19,400 Applied overhead 17,000 135,900 During November, 8,800 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost.
Chapter1: Financial Statements And Business Decisions
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Marigold produces four kinds of ice cream from a single process. The total
joint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons of
strawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan ice
cream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the other
three flavours are sold for $3.50 per gallon.
How much of the joint cost will be allocated to each product, if the sales
value at split-off method is used?
Davis Company produces a common machine component for industrial
equipment in three departments: molding, grinding, and finishing. The
following data are available for November:
Molding Grinding Finishing
Direct materials
$143,300 $15,700 $10,200
Direct labor
13,600 34,200 22,800
19,400
Applied overhead 17,000 135,900
During November, 8,800 components were completed. There is no
beginning or ending WIP in any department.
Required:
1. Prepare a schedule showing, for each department, the cost of direct
materials, direct labor, applied overhead, product transferred in from a prior
department, and total manufacturing cost.
2. Calculate the unit cost.
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