Aurora Chemical Industries processes a proprietary chemical, Q-1, and produces two outputs, Q-11 and Q-12. In October, the costs to process Q-1 are $180,000 for materials and $360,000 for conversion costs. Q-11 has a sales value of $800,000 and Q-12 has a sales value of $200,000. Using the net realizable value method, assign costs to Q-11 and Q-12 for October.

Aurora Chemical Industries processes a proprietary chemical, Q-1, and produces two outputs, Q-11 and Q-12. In October, the costs to process Q-1 are $180,000 for materials and $360,000 for conversion costs. Q-11 has a sales value of $800,000 and Q-12 has a sales value of $200,000. Using the net realizable value method, assign costs to Q-11 and Q-12 for October.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...

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