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 2 HTP-3 PST-4 RJ-5 PST-4 63,900 410,000 1,040,000 520,000 $1,044,000 $991,000 5.70 $ 7.70 Value of inventory HTP-3 $ 26,500 820,000 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 4,700 235,000 255,000 $ 82,000 6.70 $
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 2 HTP-3 PST-4 RJ-5 PST-4 63,900 410,000 1,040,000 520,000 $1,044,000 $991,000 5.70 $ 7.70 Value of inventory HTP-3 $ 26,500 820,000 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 4,700 235,000 255,000 $ 82,000 6.70 $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
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Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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Transcribed Image Text: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 inventor in
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
ons (October 1)
Value of inventory
HTP-3
PST-4
00
63,900
410,000
A14
520,000
$991,000
5.70 $ 7.70
820,000
1,040,000
RJ-5
$1,044,000
4,700
235,000
255,000
$ 82,000
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.)
6.70
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