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22) Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year: Direct materials processed: Production: Standard Premium Standard Premium Sales: 400 kgs (Both standard and premium chips weigh 20 grams each) 10,000 chips 6800 chips 9700 at $110 per chip 6200 at $190 per chip The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 16,800 chips of good products was $1,950,000. Beginning inventories totalled 140 chips for Standard and 90 chips for Premium. Ending inventory amounts reflected 140 chips of Standard and 90 chips of Premium. October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips? (Round intermediary percentages to the nearest hundredth.) A) $975,000 B) $1,226,415 C) $1,160,640 D) $1,189,623

22) Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year: Direct materials processed: Production: Standard Premium Standard Premium Sales: 400 kgs (Both standard and premium chips weigh 20 grams each) 10,000 chips 6800 chips 9700 at $110 per chip 6200 at $190 per chip The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 16,800 chips of good products was $1,950,000. Beginning inventories totalled 140 chips for Standard and 90 chips for Premium. Ending inventory amounts reflected 140 chips of Standard and 90 chips of Premium. October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips? (Round intermediary percentages to the nearest hundredth.) A) $975,000 B) $1,226,415 C) $1,160,640 D) $1,189,623

FINANCIAL ACCOUNTING
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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22) Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year: Direct materials processed: Production: 400 kgs (Both standard and premium chips weigh 20 grams each) 10,000 chips Standard Premium 6800 chips Standard 9700 at $110 per chip Premium 6200 at $190 per chip Sales: The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 16,800 chips of good products was $1,950,000. Beginning inventories totalled 140 chips for Standard and 90 chips for Premium. Ending inventory amounts reflected 140 chips of Standard and 90 chips of Premium. October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips? (Round intermediary percentages to the nearest hundredth.) A) $975,000 B) $1,226,415 C) $1,160,640 D) $1,189,623 22
Transcribed Image Text:22) Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year: Direct materials processed: Production: 400 kgs (Both standard and premium chips weigh 20 grams each) 10,000 chips Standard Premium 6800 chips Standard 9700 at $110 per chip Premium 6200 at $190 per chip Sales: The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 16,800 chips of good products was $1,950,000. Beginning inventories totalled 140 chips for Standard and 90 chips for Premium. Ending inventory amounts reflected 140 chips of Standard and 90 chips of Premium. October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips? (Round intermediary percentages to the nearest hundredth.) A) $975,000 B) $1,226,415 C) $1,160,640 D) $1,189,623 22
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