Allocating joint cost Keiffer Production manufactures three joint products in a single process. The following information is available for August: Sales Value at Split-Off Cost after Final Selling Product Gallons per Gallon Split-Off Price JP-4539 10,800 $14.00
Allocating joint cost
Keiffer Production manufactures three joint products in a single process. The following information is available for August:
| Sales Value | ||||
|---|---|---|---|---|
| at Split-Off | Cost after | Final Selling | ||
| Product | Gallons | per Gallon | Split-Off | Price |
| JP-4539 | 10,800 | $14.00 | $4.00 | $24.00 |
| JP-4587 | 43,200 | 25.00 | 5.00 | 35.00 |
| JP-4591 | 32,400 | 18.00 | 2.00 | 22.00 |
Allocate the joint cost of $1,339,200 to the production based on the following:
a. number of gallons.
Note: Round proportions to the nearest tenth of a percentage (i.e. round 13.45% to 13.5%) and dollar amounts to the nearest whole dollar.
| JP-4539 | Answer |
| JP-4587 | Answer |
| JP-4591 | Answer |
| Total | Answer |
b. sales value at split-off.
Note: Round proportions to the nearest whole percentage (i.e. round 13.45% to 13%) and dollar amounts to the nearest whole dollar.
| JP-4539 | Answer |
| JP-4587 | Answer |
| JP-4591 | Answer |
| Total | Answer |
c. approximated net realizable values at split-off.
Note: Round proportions to the nearest whole percentage (i.e. round 13.45% to 13%) and dollar amounts to the nearest whole dollar.
| JP-4539 | Answer |
| JP-4587 | Answer |
| JP-4591 | Answer |
| Total | Answer |
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