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 4,500 $14.00 $4.00 $24.00 JP-4587 18,000 25.00 5.00 35.00 JP-4591 13,500 18.00 2.00 22.00 Allocate the joint cost of $558,000 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 Note: please show all work calculations (including percentages and etc.). Thank you!

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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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	4,500	$14.00	$4.00	$24.00
JP-4587	18,000	25.00	5.00	35.00
JP-4591	13,500	18.00	2.00	22.00

Allocate the joint cost of $558,000 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

Note: please show all work calculations (including percentages and etc.). Thank you!

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