A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be proc- essed further. Information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Product Gallons Price per Gallon L-Ten 3,500 S0.50 $2.00 Triol 4,000 2,500 1.00 5.00 Pioze 1.50 6.00 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if it cost S2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be proc- essed further. Information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Product Gallons Price per Gallon L-Ten 3,500 S0.50 $2.00 Triol 4,000 2,500 1.00 5.00 Pioze 1.50 6.00 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if it cost S2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?

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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