Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 2 HTP-3 PST-4 RJ-5 HTP-3 23,500 760,000 Value of inventory PST-4 59,700 380,000 460,000 $931,000 RJ-5 4,100 205,000 225,000 $ 70,000 $ 5.10 $ 7.10 $ 6.10 920,000 $984,000 2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round intermedi calculations of "Cost per gallon" to the nearest cent.)
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 2 HTP-3 PST-4 RJ-5 HTP-3 23,500 760,000 Value of inventory PST-4 59,700 380,000 460,000 $931,000 RJ-5 4,100 205,000 225,000 $ 70,000 $ 5.10 $ 7.10 $ 6.10 920,000 $984,000 2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round intermedi calculations of "Cost per gallon" to the nearest cent.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5)
[The following information applies to the questions displayed below.]
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces
HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that
is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio
of output quantities to input quantities of direct material used in the joint process remains consistent from month to month.
Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories.
Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint
production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5.
Finished goods inventory in gallons (October 1)
October sales in gallons
October production in gallons
Additional processing costs
Final sales value per gallon
Problem 17-29 Part 2
HTP-3
PST-4
RJ-5
HTP-3
23,500
760,000
920,000
$984,000
$ 5.10
Value of inventory
PST-4
59,700
380,000
460,000
$931,000
$ 7.10
2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round intermediate
calculations of "Cost per gallon" to the nearest cent.)
RJ-5
4,100
205,000
225,000
$ 70,000
$ 6.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94ff5d39-3f2b-4442-8c46-74b0485f4936%2F09a384cf-4066-4aa7-8327-72df588f69fe%2Fc0rib3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5)
[The following information applies to the questions displayed below.]
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces
HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that
is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio
of output quantities to input quantities of direct material used in the joint process remains consistent from month to month.
Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories.
Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint
production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5.
Finished goods inventory in gallons (October 1)
October sales in gallons
October production in gallons
Additional processing costs
Final sales value per gallon
Problem 17-29 Part 2
HTP-3
PST-4
RJ-5
HTP-3
23,500
760,000
920,000
$984,000
$ 5.10
Value of inventory
PST-4
59,700
380,000
460,000
$931,000
$ 7.10
2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round intermediate
calculations of "Cost per gallon" to the nearest cent.)
RJ-5
4,100
205,000
225,000
$ 70,000
$ 6.10
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