Crane Inc. operates a lumber yard. Crane purchases the raw materials for $52400 and incurs additional processing costs of $36400 to obtain three observable joint products. Further processing and final sales values for the products are as follows: Product 25 ft board 30 ft board 50 ft board Further Processing Costs O $27275. $23229. O $41200. O $28740. $11200 13300 19100 Final Sales Value $52400 56400 62100 What is the amount of joint costs assigned to the 25 ft board using the net realizable value (NRV) method?
Crane Inc. operates a lumber yard. Crane purchases the raw materials for $52400 and incurs additional processing costs of $36400 to obtain three observable joint products. Further processing and final sales values for the products are as follows: Product 25 ft board 30 ft board 50 ft board Further Processing Costs O $27275. $23229. O $41200. O $28740. $11200 13300 19100 Final Sales Value $52400 56400 62100 What is the amount of joint costs assigned to the 25 ft board using the net realizable value (NRV) method?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...
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![Crane Inc. operates a lumber yard. Crane purchases the raw materials for $52400 and incurs additional processing
costs of $36400 to obtain three observable joint products. Further processing and final sales values for the
products are as follows:
Product
25 ft board
30 ft board
50 ft board
Further
Processing Costs
$27275.
$23229.
$41200.
O $28740.
$11200
13300
19100
Final
Sales Value
$52400
56400
62100
What is the amount of joint costs assigned to the 25 ft board using the net realizable value (NRV) method?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11e85596-aef9-4139-88a8-c055efc85c9b%2F8febc4a3-c36e-406e-a600-2539cb8db485%2F5pjpd7d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crane Inc. operates a lumber yard. Crane purchases the raw materials for $52400 and incurs additional processing
costs of $36400 to obtain three observable joint products. Further processing and final sales values for the
products are as follows:
Product
25 ft board
30 ft board
50 ft board
Further
Processing Costs
$27275.
$23229.
$41200.
O $28740.
$11200
13300
19100
Final
Sales Value
$52400
56400
62100
What is the amount of joint costs assigned to the 25 ft board using the net realizable value (NRV) method?
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