ABC Company produces joint products X and Y, each of which incurs separableproduction costs after the split-off point. Information concerning a batch produced at a joint costof $160,000 before split-off follows:ProductXYTotalSeparable costs$ 14,00025,000$ 39,000Sales value$ 68,00061,000$ 129,000What is the joint cost assigned to product line X if costs are assigned using relative net realizablevalue?a. $160,000b. $64,000C.$90,000d. $96,000

Joint cost refers to costs that have expenses for producing more than one product. Generally, every…

ABC Company produces joint products X and Y, each of which incurs separable production costs after the split-off point. Information concerning a batch produced at a joint cost of $160,000 before split-off follows: Product X Y Separable costs $ 14,000 25,000 Total $ 39,000 What is the joint cost assigned to product line X if costs are assigned using relative net realizable value? a. $160,000 b. Sales value $ 68,000 61,000 $ 129,000 $4,00 C. $90,000 d. $96,000

ABC Company produces joint products X and Y, each of which incurs separable production costs after the split-off point. Information concerning a batch produced at a joint cost of $160,000 before split-off follows: Product X Y Separable costs $ 14,000 25,000 Total $ 39,000 What is the joint cost assigned to product line X if costs are assigned using relative net realizable value? a. $160,000 b. Sales value $ 68,000 61,000 $ 129,000 $4,00 C. $90,000 d. $96,000

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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Question

ABC Company produces joint products X and Y, each of which incurs separable
production costs after the split-off point. Information concerning a batch produced at a joint cost
of $160,000 before split-off follows:
Product
X
Y
Total
Separable costs
$ 14,000
25,000
$ 39,000
Sales value
$ 68,000
61,000
$ 129,000
What is the joint cost assigned to product line X if costs are assigned using relative net realizable
value?
a. $160,000
b. $64,000
C.
$90,000
d. $96,000

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Net Realizable Value Method, Decision to Sell at Split-off or Process Further Arvin, Inc., produces two products, ins and outs, in a single process. The joint costs of this process were $60,000, and 14,000 units of ins and 36,000 units of outs were produced. Separable processing costs beyond the split-off point were as follows: ins, $102,000; outs, $450,000. Ins sell for $8.00 per unit; outs sell for $15.00 per unit. Required: 1. Allocate the $60,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Ins $fill in the blank 1 Outs $fill in the blank 2 2. Suppose that ins could be sold at the split-off point for $7.00 per unit. Should Arvin sell ins at split-off or process them further?Ins be processed further as there will be $fill in the blank 4 profit if sold at split-off.
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF1 27,300 ? DF2 18,300 ? $ 563,250 $ 187,750 Joint Cost BP 15,300 ? $ 102,300 Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 60,900 $ 560,300 $ 853,300
Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $154,680. Additional information is as follows: If Processed Further Product UnitsProduced Sales Value at Split-Off Sales Value Additional Costs A 7,110 $ 46,660 $ 64,435 $ 4,740 B 8,150 70,905 91,280 12,225 C 4,075 48,900 61,125 16,300 19,335 $ 166,465 $ 216,840 $ 33,265 Assuming that joint product costs are allocated using the net realizable value method, what were the total costs assigned to Product B? Multiple Choice $78,110. $77,906. $77,110. $79,396.
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 17,000 $ 18,800 $ 230,000 N 11,000 16,400 210,000 T 12,000 3,800 39,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method?
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