At John's company, two types of candles are created from the common melting and molding process: pillar candles and votive candles (eight votives per pack; one pack is one unit). The costs of the joint process total $56,700. The votive candles are sold directly after production, but the pillar candles are further etched and designed to increase their value. The quantities, costs, and values of these products as produced and sold are as follows. Production units at split-off Units sold at split-off Further processing cost Production units after further processing Units sold after further processing Sales price per unit Pillar Candles 20,000 $4 Votive Candles 10,000 9,000 $1.89 Etched, Decorated Pillar Candles $10.000 20.000 19.000 $6

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At John's company, two types of candles are created from the common melting and molding process: pillar candles and votive candles (eight votives per pack; one pack is one unit). The costs of the joint process total $56,700. The votive candles are sold directly after production, but the pillar candles are further etched and designed to increase their
value. The quantities, costs, and values of these products as produced and sold are as follows.
Production units at split-off
Units sold at split-off
Further processing cost
Production units after further processing
Units sold after further processing
Sales price per unit
Pillar Candles
20,000
$4
Votive Candles
10,000
9,000
$1.89
Etched, Decorated
Pillar Candles
$10,000
20,000
19,000
$6
Transcribed Image Text:At John's company, two types of candles are created from the common melting and molding process: pillar candles and votive candles (eight votives per pack; one pack is one unit). The costs of the joint process total $56,700. The votive candles are sold directly after production, but the pillar candles are further etched and designed to increase their value. The quantities, costs, and values of these products as produced and sold are as follows. Production units at split-off Units sold at split-off Further processing cost Production units after further processing Units sold after further processing Sales price per unit Pillar Candles 20,000 $4 Votive Candles 10,000 9,000 $1.89 Etched, Decorated Pillar Candles $10,000 20,000 19,000 $6
(c)
Allocate the joint costs under the NRV method and prepare (1) a partial income statement through gross margin and (2) the inventory section of the balance sheet. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.)
(1) A partial income statement through gross margin
$
(2) The inventory section of the balance sheet
John Company
Partial Income Statement
Assets
Pillar
John Company
Balance Sheet
Votive
Totals
Transcribed Image Text:(c) Allocate the joint costs under the NRV method and prepare (1) a partial income statement through gross margin and (2) the inventory section of the balance sheet. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) (1) A partial income statement through gross margin $ (2) The inventory section of the balance sheet John Company Partial Income Statement Assets Pillar John Company Balance Sheet Votive Totals
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