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Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Grades L-Ten Triol L-Ten Triol Pioze Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Pioze Grades L-Ten Triol Gallons 3,600 4,100 2,500 Pioze Further Processing Cost per Gallon Total $0.60 0.90 1.50 Allocation 2,109 X Total 2. What if it cost $1.90 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. 110000 Eventual Market Price per Gallon Joint Cost $2.60 5.40 6.50 Allocation

Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Grades L-Ten Triol L-Ten Triol Pioze Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Pioze Grades L-Ten Triol Gallons 3,600 4,100 2,500 Pioze Further Processing Cost per Gallon Total $0.60 0.90 1.50 Allocation 2,109 X Total 2. What if it cost $1.90 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. 110000 Eventual Market Price per Gallon Joint Cost $2.60 5.40 6.50 Allocation

FINANCIAL ACCOUNTING
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 Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product L-Ten Triol Pioze Grades L-Ten Triol Pioze Grades L-Ten Triol Pioze Gallons Total 3,600 4,100 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Total 2,500 Further Processing Cost per Gallon $0.60 0.90 1.50 Joint Cost Allocation $ 2. What if it cost $1.90 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. $ $ 2,109 X Joint Cost Allocation Eventual Market Price per Gallon $2.60 5.40 6.50
Transcribed Image Text:Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product L-Ten Triol Pioze Grades L-Ten Triol Pioze Grades L-Ten Triol Pioze Gallons Total 3,600 4,100 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Total 2,500 Further Processing Cost per Gallon $0.60 0.90 1.50 Joint Cost Allocation $ 2. What if it cost $1.90 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. $ $ 2,109 X Joint Cost Allocation Eventual Market Price per Gallon $2.60 5.40 6.50
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