Budde chemicals produces two industrial chemicals compounds, x15 and z24, from the same process, which last year, cost $300,000. Budde produced 10,000 gallons of x15, which sells for $40 per gallon and 40,000 gallons of z24, which sells for $20 per gallon. Using the relative sells method, how much of the joint cost should be allocated to x15? - 100,000 - 200,000 - 60,000 - 75,000

Budde chemicals produces two industrial chemicals compounds, x15 and z24, from the same process, which last year, cost $300,000. Budde produced 10,000 gallons of x15, which sells for $40 per gallon and 40,000 gallons of z24, which sells for $20 per gallon. Using the relative sells method, how much of the joint cost should be allocated to x15? - 100,000 - 200,000 - 60,000 - 75,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
The XYZ Corp. manufactures pots, pans, and bowls from a joint process. May production is 4,000 pots, 7,000 pans, and 8,000 bowls. Respective per unit selling prices at split-off are $15, $10, $5. Joint costs up to the split-off point are $75,000. If joint costs are allocated based upon the sales (market) value at split-off, what amount of joint costs will be allocated to the pots?
Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows: Carpet Kleen Floor Deodorizer Units produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Sales price per unit R7 R10 Variable cost per unit R4 R8 Fixed costs of R20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. Assuming there is unlimited demand for both products and Johnson has 10,000 machine hours available, how many units of each product should be produced and sold? Carpet Kleen : units Floor Deodorizer: units
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $54 $12 Unit variable cost $11 $9 Direct fixed cost $20,800 $41,000 Common fixed selling and administrative expenses total $84,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = _______ : __________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans _______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales…
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ______ : _____ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans ______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement 2. If…
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 ?
Use this information for Carter Co. to answer the question that follows. Carter Co. sells two products, arks and bins. Last year, Carter sold 14,000 units of arks and 56,000 units of bins. Related data are as follows: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks Bins $120 80 $80 60 $40 20 Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in sales units? a. 12,000 units O b. 28.000 units O c. 35,000 units O d. 40.000 units 13
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
Fast Track Auto produces and sells an auto part for S65 per unit. In 2020, 125,000 parts were produced and 80,000 units were sold. Other information for the year includes: Direct Materials $20 per unit Direct manufacturing labor $5 per unit Variable manufacturing costs $3 per unit Sales commissions $6 per part Fixed Manufacturing costs $790,000 per year Administrative expenses, all fixed $320,000 per year What is the inventoriable cost per unit using absorption costing? A. $28.00 B. $36.88 C. $34.32 D. $34.00
The “ABM” Company sells pencil cases for $15 each. Manufacturing cost is $4.60 per pencil case; marketing costs are $1.40 per pencil case; and royalty payments are 20% of the selling price. The fixed cost of preparing the pencil cases is $18 000. Capacity is 15 000 pencil cases. Compute the unit contribution margin and contribution rate. Compute the break-even point in units Determine the break-even point in units if fixed costs are increased by 20%. 4. Determine the break-even point in units if the selling price is increased by 30%, while fixed costs are increased by 20%.
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.
Joint products A and B emerge from common processing that costs $114,000 and yields 3,800 units of Product A and 2,600 units of Product B. Product A can be sold for S 260 per unit. Product B can be sold for $190 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values? a. $71000 b. $76000 c. $73500 d. $66000