4) Garrison Co. produces three products-X, Y, and Z-from a joint process. Each product may be sold at the split-off point or processed further. Joint production costs for the year were $120,000. Product X Y Z Units Produced 6,000 3,000 1,000 Sales Price 7.00 5.00 10.00 A) What would be the amount of joint costs allocated to each product under the Physical measure method and sales value at split-off method? B) If separable processing costs beyond the split-off point for are .50 per unit for product X, $1.50 per unit for product Y, and $0.75 per unit per product Z, what are the costs allocated to X, Y, and Z using the net realizable value method?
4) Garrison Co. produces three products-X, Y, and Z-from a joint process. Each product may be sold at the split-off point or processed further. Joint production costs for the year were $120,000. Product X Y Z Units Produced 6,000 3,000 1,000 Sales Price 7.00 5.00 10.00 A) What would be the amount of joint costs allocated to each product under the Physical measure method and sales value at split-off method? B) If separable processing costs beyond the split-off point for are .50 per unit for product X, $1.50 per unit for product Y, and $0.75 per unit per product Z, what are the costs allocated to X, Y, and Z using the net realizable value method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:4) Garrison Co. produces three products - X, Y, and Z - from a joint process. Each product may
be sold at the split-off point or processed further. Joint production costs for the year were
$120,000.
Product
X
Y
Z
Units Produced
6,000
3,000
1,000
Sales Price
7.00
5.00
10.00
A) What would be the amount of joint costs allocated to each product under the Physical
measure method and sales value at split-off method?
B) If separable processing costs beyond the split-off point for are .50 per unit for product X,
$1.50 per unit for product Y, and $0.75 per unit per product Z, what are the costs allocated to
X, Y, and Z using the net realizable value method?
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