Allocating Joint Costs Using the Net Realizable Value MethodPlease answer in same format as question. Allocating Joint Costs Using the Net Realizable Value MethodA 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 | Gallons | Further Processing Cost per Gallon | Eventual Market Price per Gallon ||---------|---------|-------------------------------------|----------------------------------|| L-Ten | 3,600 | $0.50 | $2.60 || Triol | 4,100 | $1.00 | $5.40 || Pioze | 2,100 | $1.40 | $6.60 |**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 Allocation** | Grades | Allocation | |--------|------------| | L-Ten | \$ | | Triol | \$ | | Pioze | \$ | | **Total** | \$ |2. **What if it cost $2.00 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. **Joint Cost Allocation** | Grades | Allocation | |--------|------------| | L-Ten | \$ | | Triol | \$ | | Pioze | \$ | | **Total** | \$ |

Calculation of net realizable value Products Sale value Separable cost NRV per unit gallon Total…

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 p as follows: Product L-Ten Triol Pioze Required: Grades L-Ten Triol Pioze Grades L-Ten Triol Total Pioze Gallons 3,600 4,100 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 Allocation Total 2,100 Further Processing Cost per Gallon $0.50 1.00 1.40 2. What if it cost $2.00 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 alle costs to the nearest dollar. Joint Cost Eventual Market Price per Gallon $2.60 Allocation 5.40 0000 6.60

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 p as follows: Product L-Ten Triol Pioze Required: Grades L-Ten Triol Pioze Grades L-Ten Triol Total Pioze Gallons 3,600 4,100 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 Allocation Total 2,100 Further Processing Cost per Gallon $0.50 1.00 1.40 2. What if it cost $2.00 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 alle costs to the nearest dollar. Joint Cost Eventual Market Price per Gallon $2.60 Allocation 5.40 0000 6.60

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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