The Green Company processes unprocessed goat milk up to the split- off point where two products, condensed goat milk and skim goat milk result. The followinginformation was collected for the month of October:|Direct materials processed:100,500 gallons (after shrinkage)44,500 gallonsProduction:Condensed goat milkSkim goat milk56,000 gallons$4.25 per gallon$3.50 per gallonSales:Condensed goat milkSkim goat milkThe costs of purchasing the of unprocessed goat milk and processing it up to the split - off point to yield a total of 100,500 gallons of saleable product was $186.480.There were no inventory balances of either product. Condensed goat milk may be processed further to yield 44,000 gallons (the remainder is shrinkage) of a medicinalmilk product, Xyla, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon.Skim goat milk can be processed further to yield 54,700 gallons of skim goat milk ice cream. for an additional processing cost per usable gallon of $6. The productcan be sold for $14 per gallon.There are no beginning and ending inventory balances.What is the estimated net realizable value of Xyla at the split- off point?

cessed: densed goat milk m goat milk ndensed goat milk m goat milk 100,500 gallons (after shrinkage) 44,500 gallons 56,000 gallons $4.25 per gallon $3.50 per gallon nasing the of unprocessed goat milk and processing it up to the split- off point to yield a total of 100,500 gallons of saleable product was $186 entory balances of either product. Condensed goat milk may be processed further to yield 44,000 gallons (the remainder is shrinkage) of a me a, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon. an be processed further to yield 54,700 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $6. The produc 14 per gallon. inning and ending inventory balances. mated net realizable value of Xyla at the split- off point?

cessed: densed goat milk m goat milk ndensed goat milk m goat milk 100,500 gallons (after shrinkage) 44,500 gallons 56,000 gallons $4.25 per gallon $3.50 per gallon nasing the of unprocessed goat milk and processing it up to the split- off point to yield a total of 100,500 gallons of saleable product was $186 entory balances of either product. Condensed goat milk may be processed further to yield 44,000 gallons (the remainder is shrinkage) of a me a, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon. an be processed further to yield 54,700 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $6. The produc 14 per gallon. inning and ending inventory balances. mated net realizable value of Xyla at the split- off point?

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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Ralston Dairy gathered this data about the two products that it produces: Products Current SalesValue Estimated AddedProcessing Costs Sales Value IfProcessing Further Frozen yogurt $8,100 $1,900 $10,900 Ice cream 11,900 7,100 17,900 Which of the products should be processed further? because profits $fill in the blank 3.
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Sell or Process Further Rise N’ Shine Coffee Company produces Columbian coffee in batches of 6,800 pounds. The standard quantity of materials required in the process is 6,800 pounds, which cost $4 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $8,450 per batch. The additional processing will also cause a 6% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Sell RegularColumbian(Alternative 1) Process Furtherinto Decaf Columbian(Alternative 2) DifferentialEffect on Income(Alternative 2)…
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9. Ralston Dairy gathered this data about the two products that it produces: Product Current Sales Value Estimated Added Processing Cost Sales Value If Processed Further Frozen yogurt $8,000 $2,000 $11,000 Ice Cream 12,000 7,000 18,000 PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). If needed, a Net Loss or decrease will be shown in whole dollars with "$" and parentheses - ($12,345). If processed further, what is the Frozen Yogurt's incremental profit or loss? If processed further, what is the Ice Cream's incremental profit or loss? Which of the products should be processed further? . Please note: Your answer is either "Frozen Yogurt" or "Ice Cream" - capital first letters and no quotes.
Question 2 Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COST CARD Product: Gallon of Ice Cream Standard Cost Manufacturing Cost Information Standard Cost Quantity per Unit Summary Direct Materials Cream 5 quarts $1.15 per quart $0.08 per ounce $36.00 per hour $5.75 Sugar 16 ounces $1.28 Direct Labor 3 minutes $1.80 Total Direct Costs $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. C. Compute the material and labor variances. D. Comment on the results and possible causes of the variances.
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Joint Cost Allocation-Net Realizable Value Method Lily's Lemonade Stand makes three types of lemonade: pure, raspberry, and strawberry. The lemonade is produced through a joint mixing process that costs a total of $30 per batch. One batch produces 32 cups of pure lemonade, 21 cups of strawberry lemonade, and 21 cups of raspberry lemonade. After the split-off point, all three lemonades can be sold for $0.80 per cup, but strawberry and raspberry lemonade can be processed further by adding artificial coloring and flavoring and sold for $0.95 and $1.00 per cup, respectively. It is estimated that these additional processing costs are $0.75 and $1.80 per batch for strawberry and raspberry lemonade, respectively. Allocate the joint costs of production to each product using the net realizable value method. Joint Product Pure lemonade Strawberry lemonade Raspberry lemonade Totals Allocation