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Barbara started as an intern for Marigold En they are subsequently divvied up. Her mento to $45,000). This joint process results in thre three products, Sift is ready for sale immedia generate a reasonable value for them. While allocating joint costs. The quantities and valu Quantity at Split-Off Sales Va Sift 2,900 units Rift 2,500 units Nilt 470 units (a) Using the production method of accountin decimal places, eg. 0.2516 and final answers Under the production method Share of joint costs $

Barbara started as an intern for Marigold En they are subsequently divvied up. Her mento to $45,000). This joint process results in thre three products, Sift is ready for sale immedia generate a reasonable value for them. While allocating joint costs. The quantities and valu Quantity at Split-Off Sales Va Sift 2,900 units Rift 2,500 units Nilt 470 units (a) Using the production method of accountin decimal places, eg. 0.2516 and final answers Under the production method Share of joint costs $

FINANCIAL ACCOUNTING
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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Barbara started as an intern for Marigold Enterprises last month, and this is the first time she is able to see how the joint process costs are initially determined and how they are subsequently divvied up. Her mentor shows her the source documents for the DM, DL, and MOH costs that are necessary for the process to work (adding up to $45,000). This joint process results in three different products, two of which are intentionally produced (Sift and Rift) and one that is a by-product (Nilt). Of these three products, Sift is ready for sale immediately after the joint process. Rift and Nilt, however, are both further processed (with no change in volume) in order to generate a reasonable value for them. While watching her supervisor work through the calculations, Barbara learns that the company uses the NRV method for allocating joint costs. The quantities and values for each product at various processing stages are as follows. Quantity at Split-Off Sales Value at Split-Off Further Processing Cost Final Sales Value Sift 2,900 units $10 per unit n/a n/a Rift 2,500 units n/a $2 per unit $8 per unit Nilt 470 units n/a $1 per unit $3 per unit (a) Using the production method of accounting for by-products, determine how much of the joint cost Barbara will allocate to each product. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Under the production method Share of joint costs $ Sift Rift $ $ Nilt 1:45 AM
Transcribed Image Text:Barbara started as an intern for Marigold Enterprises last month, and this is the first time she is able to see how the joint process costs are initially determined and how they are subsequently divvied up. Her mentor shows her the source documents for the DM, DL, and MOH costs that are necessary for the process to work (adding up to $45,000). This joint process results in three different products, two of which are intentionally produced (Sift and Rift) and one that is a by-product (Nilt). Of these three products, Sift is ready for sale immediately after the joint process. Rift and Nilt, however, are both further processed (with no change in volume) in order to generate a reasonable value for them. While watching her supervisor work through the calculations, Barbara learns that the company uses the NRV method for allocating joint costs. The quantities and values for each product at various processing stages are as follows. Quantity at Split-Off Sales Value at Split-Off Further Processing Cost Final Sales Value Sift 2,900 units $10 per unit n/a n/a Rift 2,500 units n/a $2 per unit $8 per unit Nilt 470 units n/a $1 per unit $3 per unit (a) Using the production method of accounting for by-products, determine how much of the joint cost Barbara will allocate to each product. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Under the production method Share of joint costs $ Sift Rift $ $ Nilt 1:45 AM
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