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 $312,400. Product Pounds Produced Separate Cost Final Selling Price Fillet Smoked Remnants 39,600 44,000 4,400 $3.00 5.20 0.30 $16.00 13.00 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 $ 184,272 Smoked 122,848 Total $ 307,120 b. Determine the value of ending Finished Goods Inventory, assuming that 8,800 pounds of salmon fillets, 5,280 pounds of smoked salmon, and 770 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 $ 67,320 x 42,187 x 924 x 110,431 x 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 $312,400. Product Pounds Produced Separate Cost Final Selling Price Fillet Smoked Remnants 39,600 44,000 4,400 $3.00 5.20 0.30 $16.00 13.00 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 $ 184,272 Smoked 122,848 Total $ 307,120 b. Determine the value of ending Finished Goods Inventory, assuming that 8,800 pounds of salmon fillets, 5,280 pounds of smoked salmon, and 770 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 $ 67,320 x 42,187 x 924 x 110,431 x Total inventory value $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $312,400.
Product Pounds Produced Separate Cost Final Selling Price
Fillet
Smoked
Remnants
39,600
44,000
4,400
$3.00
5.20
0.30
$16.00
13.00
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 $ 184,272
Smoked
122,848
Total $ 307,120
b. Determine the value of ending Finished Goods Inventory, assuming that 8,800 pounds of salmon fillets, 5,280 pounds of smoked salmon, and 770 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
$
67,320 x
42,187 x
924 x
110,431 x
Total inventory value $
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