Bramwell Industries produces joint products C and D from Material X in a single operation. 500 gallons of Material X, costing $1,200, produce 300 gallons of Product C, selling for $2.00 per gallon, and 200 gallons of Product D, selling for $4.00 per gallon. The portion of the $1,200 cost that should be allocated to Product C using the value basis of allocation is

Bramwell Industries produces joint products C and D from Material X in a single operation. 500 gallons of Material X, costing $1,200, produce 300 gallons of Product C, selling for $2.00 per gallon, and 200 gallons of Product D, selling for $4.00 per gallon. The portion of the $1,200 cost that should be allocated to Product C using the value basis of allocation is

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 4CMA: Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in...

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Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: Separable processing costs Sales price (per gallon) if processed beyond split-off The joint cost allocated to W under the net-realizable-value method would be: (Do not round intermediate calculations.) Multiple Choice $156,000. $142,105, $110,000 $128.571. $40,000 $ 15 $ $160,000 13
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchase in 1,000-gallon drums for $2,000. Processing costs are $3,000 to process the 1,000 gallons of Duo into 800 gallons of Big and 200 gallons of Mini. The selling price is $9 per gallon for Big and $4 per gallon for Mini. If the sales value at split-off method is used to allocate joint costs to the final products, the per-gallon cost (rounded to the nearest cent) of producing Big is Select one: a. $5.00 per gallon. b. $5.63 per gallon. c. $4.50 per gallon. X d. $3.38 per gallon.
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $158,000. The sales value at split-off was $167,760 for 4,400 units of Kappa and $63,280 for 6,600 units of Lambda. Required: What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations.
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $169,000. The sales value at split- off was $175,680 for 8.800 units of Kappa and $63,280 for 13,200 units of Lambda. Required: a. What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. b. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations. a. Net realizable value method b. Physical quantities method Kappa Lambda
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $168,000. The sales value at split-off was $174,960 for 8,400 units of Kappa and $63,280 for 12,600 units of Lambda. Required: What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations. Kappa Lambda a. Net realizable value method ??? ??? b. Physical quantities method ??? ???
The Freed Company produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for total revenues of $50,000, or it can be processed further at a total cost of $16,000 and then sold for $68,000. Product Y: А. Should be sold at the split-off point, rather than processed further. В. Would increase the company's overall net operating income by $18,000 if processed further and then sold. С. Would increase the company's overall net operating income by $68,000 if processed further and then sold. D. Would increase the company's overall net operating income by $2,000 if processed further and then sold. Е. None of the above
X Corp produces 200 units of A and 100 units of B products. Final sales amount of A is 9,000. Joint cost is 6,600. Cost beyond the split off point is 3,000 each for both A and B. Using NRV or adjusted sale value method, the computed unit cost of A is 22 per unit. What is the Final sales amount of product B?
Backer Company manufactures products Katran and Klare from a joint process. Product Katran has been allocated P7,500 of total joint costs of P30,000 for the 1,500 units produced. Katran can be sold at the splitoff point for P4 per unit, or it can be processed further with additional costs of P2,000 and sold for P7 per unit. If Katran is processed further and sold, the result would be A. a gain of P1,000 from further processing. B. a loss of P2,500 from further processing C. an overall loss of P1,500 D. a gain of P2,500 from further processing
Use the following information to answer questions 7 through 9: A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and can be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point for $200,000. A by-product can be sold for $30,000. a. $120,000 7. Using the net realizable value method, how much of the joint costs would be allocated to P1? b. $144,000 c. $156,000 d. $183,000 8. Using the physical quantities method, how much of the joint costs would be allocated to P1? a. $90,000 b. $120,000 c. $150,000 d. $180,000 9. If the sale value of the by-product is deducted from the joint costs of the main products, how much is Pl's share of the total costs? a. $126,000 b. $216,000 C $105,000 d. $184,000 10. The relevant data for deciding whether to process further are: Additional revenue after further processing. b. Joint costs. Additional costs of processing further. d. Both a, and c 11. Which of the…
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $24,000. Product Y weighs 20 pounds and product Z weighs 80 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation ? Product Z allocation ?
VE The G-Lab Company produced three joint products at a joint cost of $150,000. Two of these products were processed further. Production and sales were: K Product Sales Additional Processing Costs 200,000 0 100,000 If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product A? (Do not round intermediary calculations. Round final answer to the nearest cent) A B с Weight 100,000 lbs 200,000 lbs 300,000 lbs. OA $25,000.00 B. $100,000.00 OC. $75,000.00 OD. $81,666.67 245,000 30,000 175,000
How much is the net income attributable to Product M, assuming that joint costs are allocated using the Approximate Net Realizable Value x, and after being processed further, 1,800 gallons of Product M was sold during the year? TVA Company produces three products from the same process and incurs joint processing costs of P150,000. Sales price per gallon at split-off Disposal cost per gallon at split-off P 62.50 Final sales price per gallon P350.00 Gallons Further processing costs P 50.00 2,400 1,100 M P225.50 N 300 150.00 100.00 500.00 500 500 400.00 100.00 750.00 Disposal costs for the products if they are processed further are: M, P 150.00; N, P 275.00; Q, P 50.00.