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By-product/joint product journal entries Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000. Prepare the journal entries for Corma if it is: Note: List any multiple debits or any multiple credits in alphabetical order by account name. a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs. Account By-Product Inventory-Corma Various accounts Debit Credit ÷ ÷ 30 0 0 30 To record completed production of by-product b. further processed as a by-product and transferred to storage at net realizable value with a corresponding reduction of the manufacturing costs of Zilla. Account Debit Credit 0 0 ÷ 0 0 ÷ 0 0 To record completed production of by-product c. further processed and transferred to finished goods with joint cost allocated based on relative sales value at the split-off point. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Account Debit Credit = 0 ÷ 0 ÷ 0 ooo 0 0 0 To allocate joint cost = 0 0 0 0 To record separate processing costs of Corma ÷ 0 0 ÷ 0 0 To record completed production of Corma Please answer all parts of the question. Check

By-product/joint product journal entries Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000. Prepare the journal entries for Corma if it is: Note: List any multiple debits or any multiple credits in alphabetical order by account name. a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs. Account By-Product Inventory-Corma Various accounts Debit Credit ÷ ÷ 30 0 0 30 To record completed production of by-product b. further processed as a by-product and transferred to storage at net realizable value with a corresponding reduction of the manufacturing costs of Zilla. Account Debit Credit 0 0 ÷ 0 0 ÷ 0 0 To record completed production of by-product c. further processed and transferred to finished goods with joint cost allocated based on relative sales value at the split-off point. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Account Debit Credit = 0 ÷ 0 ÷ 0 ooo 0 0 0 To allocate joint cost = 0 0 0 0 To record separate processing costs of Corma ÷ 0 0 ÷ 0 0 To record completed production of Corma Please answer all parts of the question. Check

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 66P: Sell at Split-Off or Process Further Eunice Company produces two products from a joint process....
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By-product/joint product journal entries Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000. Prepare the journal entries for Corma if it is: Note: List any multiple debits or any multiple credits in alphabetical order by account name. a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs. Account By-Product Inventory-Corma Various accounts Debit Credit ÷ ÷ 30 0 0 30 To record completed production of by-product b. further processed as a by-product and transferred to storage at net realizable value with a corresponding reduction of the manufacturing costs of Zilla. Account Debit Credit 0 0 ÷ 0 0 ÷ 0 0 To record completed production of by-product c. further processed and transferred to finished goods with joint cost allocated based on relative sales value at the split-off point. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Account Debit Credit = 0 ÷ 0 ÷ 0 ooo 0 0 0 To allocate joint cost = 0 0 0 0 To record separate processing costs of Corma ÷ 0 0 ÷ 0 0 To record completed production of Corma Please answer all parts of the question. Check
Transcribed Image Text:By-product/joint product journal entries Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000. Prepare the journal entries for Corma if it is: Note: List any multiple debits or any multiple credits in alphabetical order by account name. a. transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs. Account By-Product Inventory-Corma Various accounts Debit Credit ÷ ÷ 30 0 0 30 To record completed production of by-product b. further processed as a by-product and transferred to storage at net realizable value with a corresponding reduction of the manufacturing costs of Zilla. Account Debit Credit 0 0 ÷ 0 0 ÷ 0 0 To record completed production of by-product c. further processed and transferred to finished goods with joint cost allocated based on relative sales value at the split-off point. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Account Debit Credit = 0 ÷ 0 ÷ 0 ooo 0 0 0 To allocate joint cost = 0 0 0 0 To record separate processing costs of Corma ÷ 0 0 ÷ 0 0 To record completed production of Corma Please answer all parts of the question. Check
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