**Biondi Industries Chemical Production Analysis**Biondi Industries is a manufacturer of chemicals for various purposes. One process produces HTP–3, used in hot tubs and swimming pools; PST–4, used in pesticides; and RJ–5, sold to fertilizer manufacturers. The company employs the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct materials is consistent monthly. Biondi values its finished goods inventories using FIFO (first-in, first-out).**October Operations Data:**During October, Biondi's joint production costs totaled $2,550,000 for manufacturing HTP–3, PST–4, and RJ–5.| | HTP–3 | PST–4 | RJ–5 ||--------------------------|--------|--------|-------|| Finished goods inventory in gallons (October 1) | 26,500 | 63,900 | 4,700 || October sales in gallons | 820,000 | 410,000 | 235,000 || October production in gallons | 1,040,000 | 520,000 | 255,000 || Additional processing costs | $1,044,000 | $991,000 | $82,000 || Final sales value per gallon | $5.70 | $7.70 | $6.70 |**Problem 17-29 Part 1****Requirement:**1. Calculate Biondi Industries' allocation of joint production costs for October. Instructions: Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.**Allocation Table:**| Joint Products | Allocation of Joint Cost ||----------------|--------------------------|| HTP–3 | || PST–4 | || RJ–5 | |Use this information to calculate and understand the distribution of production costs among the different products.

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Description: **Biondi Industries Chemical Production Analysis**Biondi Industries is a manufacturer of chemicals for various purposes. One process produces HTP–3, used in hot tubs and swimming pools; PST–4, used in pesticides; and RJ–5, sold to fertilizer manufac

Joint product costs can be allocated on the following basis 1. Net realisable value 2. Volume of…

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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 $2,550,000 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 1 HTP-3 26,500 820,000 1,040,000 $1,044,000 5.70 $ PST-4 63,900 410,000 520,000 $991,000 $ 7.70 RJ-5 4,700 235,000 255,000 $ 82,000 6.70 $ Required: 1. Determine Biondi Industries' allocation of joint production costs for the month of October. (Round the calculation of "Relative

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 $2,550,000 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 1 HTP-3 26,500 820,000 1,040,000 $1,044,000 5.70 $ PST-4 63,900 410,000 520,000 $991,000 $ 7.70 RJ-5 4,700 235,000 255,000 $ 82,000 6.70 $ Required: 1. Determine Biondi Industries' allocation of joint production costs for the month of October. (Round the calculation of "Relative

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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