39 Synesthor Company harvests and processes almonds into three products:candied almonds, almond butter, and almond flour. The joint production costfor harvesting one ton of almonds is $500. The selling price of the Synesthor'sthree products are as follows:• Candied almonds: $1.00 per poundAlmond butter: $5.00 per 40-pound bag•Almond flour: $14 per tonA new investor in Synesthor Company thinks that the company is losing moneywhenever it sells almond flour and has called for dropping this product fromthe product line. The controller of Synesthor Company has calculated that theextra processing cost (beyond the joint production costs) for almond flour is $8per ton. Synesthor Company is currently selling 1,000 tons of almond flour peryear.How much would Synesthor Company's net income change if it were to stopselling almond flour?It would increase by $6,000It would decrease by $6,000It would increase by $14,000It would decrease by $14,000

Step 1:In decision making we consider only relevant cost. Here in given question joint cost of $500…

Answered: 39 Synesthor Company harvests and…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 86IIP

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By-product/joint product journal entriesArguillo Inc. is a 10,000 -acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $1,750,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $100,000.Prepare the journal entries for Corma if it is:Note: List any multiple debits or any multiple credits in alphabetical order by account name.a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla’s production costs. Account Debit Credit Answer Answer Answer Answer Answer Answer To record completed production of by-product b. further processed as a by-product…
By-product/joint product journal entries Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000. Prepare the journal entries for Corma if it is: Note: List any multiple debits or any multiple credits in alphabetical order by account name. a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs. Account By-Product Inventory-Corma Various accounts Debit Credit ÷ ÷ 30 0 0 30 To record completed production of by-product b. further processed as a by-product and…
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A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $18,000. Pounds Sales priceper pound atsplit-off Disposalcost perpound atsplit-off Furtherprocessingper pound Final saleprice perpound Alpha 1,260 $7.00 $4.50 $1.50 $ 8.00 Omega 2,940 10.00 6.00 3.50 12.25 If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)? Group of answer choices $13,846 $4,154 $2,938 $5,400
A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $9,000. Pounds Sales priceper pound atsplit-off Disposalcost perpound atsplit-off Furtherprocessingper pound Final saleprice perpound Alpha 1,800 $7.00 $4.50 $1.50 $ 8.00 Omega 2,600 10.00 6.00 3.50 12.25 If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using a physical measure method, what amount of joint processing cost is allocated to Omega (round to the nearest dollar)? Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)?
11q20
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Joint-cost allocation: Sell immediately or process further. Nervana Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $350 can be converted for an additional $210 into 650 pounds of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can besold in bulk for $4.50 per gallon. NSP can process the 650 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.32 per pound. The 100 gallons of soy oil can be packaged at a cost of $230 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.15.
A7
Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: Gasoline $2 per gallon Diesel 1 per gallon Kerosene 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product

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