At the end of his company's first year in operation, Steven is allocating costs to the company's three main products: wheat flour,bleached white flour, and baking flour. These three products are produced from one main process, which costs the company $113,000.The company produced 5,040 pounds of wheat flour, 2,940 pounds of bleached white flour, and 6,020 pounds of baking flour. Of thequantities produced, Steven notes sales of 80%, 90%, and 60% of the wheat, white, and baking flour quantities available, respectively.Calculate how much of the joint costs will be allocated to each of the three joint products under the physical quantities method. (Roundproportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)WheatAllocated joint costs$$WhiteBaking

Wheat flourBleached white flourBaking flourAllocated Joint Costs$40,680$23,730$48,590 Explanation:To…

Answered: At the end of his company's first year…

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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Delta produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $ 90,000 Direct labor 130,000 Variable factory overhead Fixed factory overhead 140,000 Total costs $420,000 60,000 Of the fixed factory overhead costs, $60,000 is avoidable. 20) Conners has offered to sell 10,000 units of the same part to Delta for $36 per unit. Assuming there is no other use for the facilities, what is the effect on operating income if Delta buys from Conners? 21) Assuming no other use of their facilities, at what buying price per unit for Delta would Delta's operating income be the same whether they made the part or bought it from Conners?
XYZ Co.uses a 5,000 square foot factory space that it rents for $3,000 a month for all its manufacturing activities . The company has decided to switch to an activity -based costing system , and has identified its activities as follows : Preparation and Setup, Machining , Finishing , and Quality Control.500 square feet of the factory are used for machining , while 2,000 square feet (each ) are used for Preparation and Setup and Quality Control.Finishing uses 500 square feet. When assigning indirect costs to each activity , how much factory rent ?should be assigned to the Preparation and Setup cost pool a. $ 1,400 b. $ 1,200. c. $300 d. None of the given answer is correct e. $ 350
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Hawkins Audio Video, Inc. manufactures digital cameras. Hawkins is considering whether it should outsource production of a part used in the manufacturing of its cameras. 60,000 units of the part were made by Hawkins last year. At this production level, the company incurred the following direct product costs: Direct Materials $250,000 Direct Labor $104,000 Manufacturing Overhead incurred during the same period for production of the part is represented by the following cost behavior equation: y = $0.10x + $50,000. If the part were purchased from an outside supplier, 80% of the total fixed manufacturing overhead cost would continue, and the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional income from this other product would be $12,600 per year. A supplier has been identified who can sell the part to Hawkins at a price of $7.80 per unit. Which of…
Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 26,000 pounds of Alpha at a total cost of $102,000. The output of the process consisted of 30,150 units of product X, 36,850 units of product Y, and 7,400 units of by-product Z. By-product Z can be sold for $10,800. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y?
POPOL Company manufactures 100,000 units of Part P yearly as a major component for one of its finished goods. The current report shows the breakdown of the total manufacturing costs of Part P: Direct materials P120,000 Direct labor 80,000 Variable overhead 40,000 Fixed overhead 160,000 Kupa Company, a third party entity, has submitted a proposal to sell POPOL 100,000 units of Part P annually. If POPOL started sourcing these from outside, the plant and equipment currently used to product Part P can be used to manufacture other products of POPOL. This will yield potential savings of P10,000 related to lease production capability to support…
Dinoco manufactures racing products in a manufacturing facility with a total of 25,000 square feet of theoretically usable space. However, they can only practically use 80% of that space for production. During 2021, the company incurred $120,000 in direct materials and $80,000 in direct labor. Total overhead costs associated with the manufacturing facility were $321,000. If Dinoco only actually used 15,000 square feet of space during the year, what was their cost of unused capacity? (round to the nearest dollar) ***CORRECT ANSWER IS 80,250. PLEASE EXPLAIN HOW STEP-BY-STEP***
PT Y manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. The company decided to further process the three products before they were sold. The number of units produced (based on regular sales), the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E F Number of Units Produced 4,000 6,000 2,000 Selling Price at Split-Off Additional Processing Costs Selling Price after Processing $25.00 $26.60 $34.40 $14,000 $20,000 $9,000 $30.00 $31.20 $37.60 Instructions 1) Allocate the $200,000 joint cost to product D, E, and F using these methods: a. Physical-measure method (2%) b. NRV method (5%) 2) Which information is relevant to the decision on whether or not to process the products further? (2%). Explain why this information is relevant (2%). 3) Which product(s) should be processed further and which should be sold at…

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