A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $14,000 and $25,000, respectively. The skim milk can be further processed at a cost of $8,120 in order to yield sweetened condensed milk. This final product can be sold for $23,000. The cream can also be processed further, at a cost of $9,880, in order to generate butter, which is worth $43,000. If the joint process costs are $20,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs $ eTextbook and Media Skim Milk $ Cream

A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $14,000 and $25,000, respectively. The skim milk can be further processed at a cost of $8,120 in order to yield sweetened condensed milk. This final product can be sold for $23,000. The cream can also be processed further, at a cost of $9,880, in order to generate butter, which is worth $43,000. If the joint process costs are $20,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs $ eTextbook and Media Skim Milk $ Cream

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...

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Carina Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre. At an additional cost of $400, Carina can process the 400 grams of Crystal into 500 grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent is packaged at an additional cost of $300 and made into 200 packs of Softener that can be sold for $2 per pack. Required: 1. Allocate the joint cost to the Detergent and the Softener using the following: a. Sales value at split-off method b. NRV method 2. Should Carina have processed each of the products further? What effect does the allocationmethod have on this decision? Make full references to Question 1 when possible
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Rise N’ Shine Coffee Company produces Columbian coffee in batches of 4,000 pounds. The standard quantity of materials required in the process is 4,000 pounds, which cost $5.73 per pound. Columbian coffee can be sold without further processing for $9.02 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.60 per pound. The processing into Decaf Columbian requires additional processing costs of $7,012 per batch. The additional processing will also cause a 5% loss of product due to evaporation. Required: a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. b. Should Rise N’ Shine sell Columbian coffee or process further…
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Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milkas the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fullyprocessed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost ofoperations is $335,000.Production and sales data are as follows: Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost of operations is $335,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) There were no beginning inventories on October 1, 2020. Read the requirements Requirement 1. What is the gross margin for Cider Hill Farm under…
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