Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $1,604 $2,000 O $0 Units Produced in lbs $2,250 21,000 12,200 2,250 How much in joint costs should be allocated to the by-product, using the sales method? Units Sold in lbs 19,500 10,300 2,000 Sales price per lb $1.30 6.20 1.00
Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $1,604 $2,000 O $0 Units Produced in lbs $2,250 21,000 12,200 2,250 How much in joint costs should be allocated to the by-product, using the sales method? Units Sold in lbs 19,500 10,300 2,000 Sales price per lb $1.30 6.20 1.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company
uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of
$75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and
manufacturing overhead. Beginning inventory for all three products is zero. Information for
production of the product is as follows:
Product
Coconut Milk
Coconut Meat
Coconut Skin
$1,604
$2,000
O $0
Units Produced
in lbs
21,000
12,200
2,250
How much in joint costs should be allocated to the by-product, using the sales method?
O $2,250
Units Sold
in lbs
19,500
10,300
2,000
Sales price
per lb
$1.30
6.20
1.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education