Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: PRODUCTS X Y Z TOTAL Units produced 32,000 32,000 16,000 80,000 Joint costs ? ? ? $ 322,000 Sales value at split-off $ 480,000 $ 240,000 $ 16,000 $ 736,000 Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were Multiple Choice $120,000. $136,800. $240,000. $204,000.
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: PRODUCTS X Y Z TOTAL Units produced 32,000 32,000 16,000 80,000 Joint costs ? ? ? $ 322,000 Sales value at split-off $ 480,000 $ 240,000 $ 16,000 $ 736,000 Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were Multiple Choice $120,000. $136,800. $240,000. $204,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows:
| PRODUCTS | |||||||||||||
| X | Y | Z | TOTAL | ||||||||||
| Units produced | 32,000 | 32,000 | 16,000 | 80,000 | |||||||||
| Joint costs | ? | ? | ? | $ | 322,000 | ||||||||
| Sales value at split-off | $ | 480,000 | $ | 240,000 | $ | 16,000 | $ | 736,000 | |||||
Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were
Multiple Choice
-
$120,000.
-
$136,800.
-
$240,000.
-
$204,000.
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