By-product; net realizable value method Weinberg Canning produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split-off or after further processing. In October, the joint cost of the production process was $142,000. Product Pounds Produced Separate Cost Final Selling Price Fillet $3.00 $16.00 Smoked 5.20 13.00 Remnants 0.30 1.50 18,000 20,000 2,000 a. The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off. Use the net realizable value method to account for the by-product, subtracting the by-product cost from the cost of Work in Process Inventory-Joint Products. Fillet $ Smoked Total $ b. Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2,400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold. Note: Round cost per pound to the nearest penny in your calculations. Inventory values: Fillet Smoked Remnants Total inventory value $

By-product; net realizable value method Weinberg Canning produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split-off or after further processing. In October, the joint cost of the production process was $142,000. Product Pounds Produced Separate Cost Final Selling Price Fillet $3.00 $16.00 Smoked 5.20 13.00 Remnants 0.30 1.50 18,000 20,000 2,000 a. The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off. Use the net realizable value method to account for the by-product, subtracting the by-product cost from the cost of Work in Process Inventory-Joint Products. Fillet $ Smoked Total $ b. Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2,400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold. Note: Round cost per pound to the nearest penny in your calculations. Inventory values: Fillet Smoked Remnants Total inventory value $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint casts for one batch are as fallows: Direct materials $67,900 Direct labor 34,000 Overhead 25,500 At the solit-of point, a betch vields 1,400 berion, 2,600 selene, 2,500 plicene, and 3.500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Required: 1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Allocated Joint Cost Barion Selene Plicene Corsol Total 2. Suppose that the products are weighted as shown below: Barlon 1.0 Selene 2.0 Plicene 1.5 Corsol 2.5 Allocate the juint custs using the weighted average method. If required, round your percentage allocation to four decimal places and…
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Backflush Costing: Variation 2 Potter Company has installed a JIT purchasing and manufacturing system and is using backflush accounting for its cost flows. It currently uses a two-trigger approach with the purchase of materials as the first trigger point and the completion of goods as the second trigger point. During the month of June, Potter had the following transactions: Raw materials purchased $245,000 Direct labor cost 41,500 Overhead cost 207,500 Conversion cost applied 269,750* *$41,500 labor plus $228,250 overhead. There were no beginning or ending inventories. All goods produced were sold with a 60 percent markup. Any variance is closed to Cost of Goods Sold. (Variances are recognized monthly.) Required: Prepare the journal entries for the month of June using backflush costing, assuming that Potter uses the sale of goods as the second trigger point instead of the completion of goods. For a compound transaction, if an amount box does not require an entry, leave…
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