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 $198,800. Product Pounds Produced Separate Cost Final Selling Price 25,200 28,000 2,800 $3.00 5.20 0.30 $16.00 13.00 1.50 Fillet Smoked Remnants 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 $ 117,264 78,176 195,440 b. Determine the value of ending Finished Goods Inventory, assuming that 5,600 pounds of salmon fillets, 3,360 pounds of smoked salmon, and 490 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 Remnants Total inventory value $ $ 26,056 x 68,795 x 2,772 x 162,772 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 $198,800. Product Pounds Produced Separate Cost Final Selling Price 25,200 28,000 2,800 $3.00 5.20 0.30 $16.00 13.00 1.50 Fillet Smoked Remnants 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 $ 117,264 78,176 195,440 b. Determine the value of ending Finished Goods Inventory, assuming that 5,600 pounds of salmon fillets, 3,360 pounds of smoked salmon, and 490 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 Remnants Total inventory value $ $ 26,056 x 68,795 x 2,772 x 162,772 x
Chapter1: Financial Statements And Business Decisions
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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 $198,800.
Product Pounds Produced Separate Cost Final Selling Price
25,200
28,000
2,800
$3.00
5.20
0.30
$16.00
13.00
1.50
Fillet
Smoked
Remnants
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
$
117,264
78,176
195,440
b. Determine the value of ending Finished Goods Inventory, assuming that 5,600 pounds of salmon fillets, 3,360 pounds of smoked salmon, and 490 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
Remnants
Total inventory value $
$
26,056 x
68,795 x
2,772 x
162,772 x
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