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 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

FINANCIAL ACCOUNTING
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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 2
HTP-3
PST-4
RJ-5
Value of inventory
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
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
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 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 Value of inventory 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 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
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