A company produces three products -- Good, Better, and Best -- as the result of joint processingplus separable processing after the split-off point. Records for the year show the following:GoodBetterBestTotal$720,000Joint costSeparable processing costsUnits producedUnits soldSales price$120,00020,00018,000$ 25$90,00026,00015,000$ 45$50,00016,00013,000$ 68Compute the total cost of the ending inventory for each product, assuming no beginninginventory and using the NRV method for joint cost allocation.Good: $Better: $Best: $

A manufacturing concern may be engaged in producing two or more different goods which are produced…

A company produces three products -- Good, Better, and Best -- as the result of joint processing plus separable processing after the split-off point. Records for the year show the following: Good Better Best Total Joint cost Separable processing costs $120,000 Units produced Units sold Sales price $720,000 20,000 18,000 $ 25 $90,000 26,000 15,000 $ 45 $50,000 16,000 13,000 $ 68 Compute the total cost of the ending inventory for each product, assuming no beginning inventory and using the NRV method for joint cost allocation. Good: $ Better: $ Best: $

A company produces three products -- Good, Better, and Best -- as the result of joint processing plus separable processing after the split-off point. Records for the year show the following: Good Better Best Total Joint cost Separable processing costs $120,000 Units produced Units sold Sales price $720,000 20,000 18,000 $ 25 $90,000 26,000 15,000 $ 45 $50,000 16,000 13,000 $ 68 Compute the total cost of the ending inventory for each product, assuming no beginning inventory and using the NRV method for joint cost allocation. Good: $ Better: $ Best: $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Knox Corporation manufactures an item. The cost structure is: Manufacturing $100 $800,000 Variable cost per unit Total fixed cost Selling & Administrative $30 $203,000 In its first year of operations, Knox Corporation produced 70,000 items and sold 64,000 at $200 each. Part 1: What is the contribution margin at the end of the first year of operations under the variable costing method? Part 2: Which costing method (variable or absorption) will generate a higher net operating income in Knox Corporation's first year of operations and by how much? Hint: See page 6-21 Illustration 6A- for Variable Costing model and page 6-20 Illustration 6A guidance on Absorption Costing model.
company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output 10,000 pounds A 4 per pound B 7 per pound 22,000 pounds 5,000 gallons 12 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs Product Selling Price A $ $ 53,000 38,000 B $ $ с $ 18,000 $ Which products should be processed further? 7 per pound 11 per pound 18 per gallon
None
Y Company produces two joint products: Sweet and Sour. Joint cost is allocated using the net realizable value method at split-off point. Joint production cost is $70,000. Neither product is salable at split-off point. During May, the additional costs incurred beyond split-off point are as follows: Sweet $ 32,000 Sour $ 48,000 Production: Sweet: 3,200 units Sour: 1,600 units Selling prices: Sweet: $50.00 per unit Sour: $ 90.00 per unit What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit) Joint cost allocated to Sweet: $_____________________________ Joint cost allocated to Sour:…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $90,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $3 per pound 17,000 pounds B $4 per pound 22,000 pounds C $12 per gallon 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price A S 36,000 $5 per pounds B S 35,000 $7 per pounds C S 11,000 $ 16 per gallons Required: Compute the incremental profit (loss) for each product. Product Product Product A B C Selling price after further processing Selling…
Forest Products, Incorporated manufactures three products (FP-10, FP-20, and FP-40) from a single, joint input. None of the products can be sold without further processing. In November, joint product costs were $241,300. Additional information follows: Product FP-10 FP-20 FP-40 Units Produced 105,000 157,500 87,500 Product FP-10 FP-20 FP-40 Sales Values $ 177,750 311,250 85,300 Required: Forest Products uses the physical quantities (units produced) method to allocate joint costs. What joint costs would be allocated to each of the three products in November? Joint Costs Allocated Processing Costs (After Split-Off) $ 29,300 109,300 25,300
am. 113.
ss
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $385,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 27.00 per pound 14,400 pounds B $ 21.00 per pound 22,400 pounds C $ 33.00 per gallon 5,600 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price A $ 89,220 $ 32.80 per pound B $ 129,170 $ 27.80 per pound C $ 60,160 $ 41.80 per gallon Required: 1. What is the financial advantage…