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 $170,400. Product Pounds Produced Separate Cost Final Selling Price Fillet 21,600 $3.00 $16.00 Smoked 24,000 5.20 13.00 Remnants 2,400 0.30 1.50 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 $ 100,512 Smoked Total $ 67,008 ✓ 167,520 b. Determine the value of ending Finished Goods Inventory, assuming that 4,800 pounds of salmon fillets, 2,880 pounds of smoked salmon, and 420 pounds of salmon remnants were sold. Note: Round cost per pound to the nearest penny in your calculations. Note: Round your final answers below to the nearest whole dollar. Inventory values: Fillet Smoked $ 30,600 × 58,925 × Remnants 2,376 Total inventory value $ 139,421 X
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 $170,400. Product Pounds Produced Separate Cost Final Selling Price Fillet 21,600 $3.00 $16.00 Smoked 24,000 5.20 13.00 Remnants 2,400 0.30 1.50 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 $ 100,512 Smoked Total $ 67,008 ✓ 167,520 b. Determine the value of ending Finished Goods Inventory, assuming that 4,800 pounds of salmon fillets, 2,880 pounds of smoked salmon, and 420 pounds of salmon remnants were sold. Note: Round cost per pound to the nearest penny in your calculations. Note: Round your final answers below to the nearest whole dollar. Inventory values: Fillet Smoked $ 30,600 × 58,925 × Remnants 2,376 Total inventory value $ 139,421 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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 $170,400.
Product Pounds Produced Separate Cost Final Selling Price
Fillet
21,600
$3.00
$16.00
Smoked
24,000
5.20
13.00
Remnants
2,400
0.30
1.50
Transcribed Image Text: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 $ 100,512
Smoked
Total
$
67,008 ✓
167,520
b. Determine the value of ending Finished Goods Inventory, assuming that 4,800 pounds of salmon fillets, 2,880 pounds of smoked salmon, and 420 pounds of
salmon remnants were sold.
Note: Round cost per pound to the nearest penny in your calculations.
Note: Round your final answers below to the nearest whole dollar.
Inventory values:
Fillet
Smoked
$
30,600 ×
58,925 ×
Remnants
2,376
Total inventory value $
139,421 X
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