7-42 Jolnt Products Choi Company manufactures two skin care lotions. Smooth Skin and Silken Skin,from a joint process. The joint costs incurred are $420.000 tor a standard production run that gener-ates 180,000 pintEs of Smooth Skin and 120.000 pints of Silken Skin. Smooth Skin selIs for $2.40 perpint, while Silken Skin sells for $3.90 per pint.Required1. Assuming that both products are sold at the split-off paint. how much of the joint cest of each produc-tion run is allocated to Smooth Skin using the relative sales value method?2. If no separable costs are incurred after the split-off point, how much of the joint cost of cach productionrun is allocated to Silken Skin using the physical measure method method?3. If separable processing costs beyond the split-off point ae $1.40 per pint for Smooth Skin and s0.90 perpint for Silken Skin, how much of the joint cost of cach production run is allocated to Silken Skin usinga net realizable value method?4. If separable prOcessing costs beyond the split-off point are S1.40 per pint for Smooth Skin and $0.90per pint for Silken Skin, how much of the joint cost of cach production run is allocated to Snooth Skinusing a physical measure method method?(CMA Adapted)1 7-43 Jolnt Products Northwest Building Products (NBP) manufactures two lumber products trom ajoint milling process: residential building lumber (RBL) and commercial building lumber (CBL).A standard production run incurs joint costs of $450,000 and results in 80.000 units of RBL and120.000 units of CBL. Each RBL sells for S10 per unit and each CBL sells for $12 per unit.Required1. Assuming that no further processing occurs after the split-off point, how much of the joint costs areallocated to commercial lumber (CBL) on a physical measure method basis?2. If no further processing occurs after the split-off point. how much of the joint cost is allocated to theresidential lumber (RBL) using a sales value at split-off method?3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 perproduction run. During this process, 10.000 units are unavoidably lost and have no value. The remainingunits of CBL are salable at $14 per unit. The RBL, although salable immediately at the split-off point, iscoated with a tarlike preservative that costs $200,000 per production run. The RBL is then sold for $12each. Using the net realizable value basis, how much of the completion costs should be assigned to eachunit of CBL?

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7-42 Joint Products Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $420.000 for a standard production run that gener- ates 180,000 pints of Smooth Skin and 120.000 pints of Silken Skin. Smooth Skin sells for $2.40 per pint, whike Silken Skin sells for $3.90 per pint. Required 1. Assuming that both products are sold at the split-off point. how much of the joint cost of cach produc- tion run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of cach production run is allocated to Silken Skin using the physical measure method method? 3. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and S0 90 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?

7-42 Joint Products Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $420.000 for a standard production run that gener- ates 180,000 pints of Smooth Skin and 120.000 pints of Silken Skin. Smooth Skin sells for $2.40 per pint, whike Silken Skin sells for $3.90 per pint. Required 1. Assuming that both products are sold at the split-off point. how much of the joint cost of cach produc- tion run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of cach production run is allocated to Silken Skin using the physical measure method method? 3. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and S0 90 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?

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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