Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,000 gallons of product A and 1,600 gallons of product B to the split-off point costs $5,900. The sales value at split-off is $2.00 per gallon for product A and $25.00 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.50 per gallon before it can be sold at a price of $34 per gallon. Required: What is the company's cost to produce 1,600 gallons of product B? Product cost

Mainstream Corporation manufactures two products, I and II, from a joint process. A production run costs $20,000 and results in 500 units of I and 2,000 units of II.   Both products must be processed past the split-off point, incurring separable costs of $5 per unit for I and $10 per unit for II. The market price is $25 for I and $20 for II.   Required: Allocate joint production costs to each product using the physical units method. Allocate joint production costs to each product using the net realizable value method. Allocate joint production costs to each product using the constant gross margin percentage method.

Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $90,000 in the production of 20,000 gallons of P and 50,000 gallons of Q. Kingston can sell P and Q at split-off for $2.00 per gallon and $2.20 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows:   P Q Separable processing costs $ 22,000 $ 42,000 Sales price (per gallon) if processed beyond split-off $ 4 $ 6 what woulkd be the joint cost allocated to Q under the relative-sales-value method ? Note: Do not round intermediate calculations.

RelyaTech Corporation makes two products, Light and Heavy. These two products emerge from a joint process. Product Light has been allocated $19,300 of the total joint costs of $40,000. A total of 2,600 units of product Light are produced from the joint process. (ID#62183) Product Light can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $10,600 and then sold for $15 per unit Q) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for RelyaTech Corporation compared with sale in its unprocessed form directly after the split-off point? Multiple Choice ($13,900) ($27300) $(5,400) $28,400 Help Save & Exit

The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,500 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 75,000 75,000 $ 210,000 $ 15,000 $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 $ 10,000 $ 12.50 Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total…

XYZ Corporation manufactures two products out of a joint process-A and B. The joint costs incurred are $197,000 for a standard production run that generates 80,000 pounds of A and 20,000 pounds of B. A can sell for $6.00 per pound whereas B sells for $5.00 per pound. If additional processing costs beyond the splitoff point are $2.00 per pound for A and $1.00 per pound for B, the amount of joint cost of each production run allocated to A using the constant gross-margin percentage NRV method is: $152,000. $312,000. $65,000. $45,000.

The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,200 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 60,000 60,000 $ 168,000 $ 12,000 $ 6.00 Bit Yang 48,000 48,000 $ 50,000 $ 10,000 $ 12.50 Units sold 12,000 12,000 $ Units produced Separable processing costs-variable Separable processing costs-fixed Sales price $ 1.50 Total joint costs for Marshall in the recent month are $176,800, of which $76,024 is a variable cost. Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each…

Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $486,000 and results in 86,400 units of RBL and 129,600 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit.   Required: 1. Assuming that no further processing occurs after the split-off point, how much of the joint costs are allocated to commercial lumber (CBL) on a physical measure method basis? 2. If no further processing occurs after the split-off point, how much of the joint cost is allocated to the residential lumber (RBL) using a sales value at split-off method? 3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $324,000 per production run. During this process, 10,800 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although…

Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $531,000 and results in 94,400 units of RBL and 141,600 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit. Required: 1. Assuming that no further processing occurs after the split-off point, how much of the joint costs are allocated to commercial lumber (CBL) on a physical measure method basis? 2. If no further processing occurs after the split-off point, how much of the joint cost is allocated to the residential lumber (RBL) using a sales value at split-off method? 3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $354,000 per production run. During this process, 11,800 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable…

Using a physical measurement method, what amount is joint processing cost is allocated to product Wan? Using net realizable value at split-off, what amount of joint processing cost is allocated to product tri?