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?

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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2. A vegetable oil refining company obtains four products whose cost details are: Joint costs of the four products: Rs. 8,29,600 Outputs: A - 5,00,000 litres; B-10,000 litres,C- 5,000 litres and D- 9,000 kgs. Further processing costs: A Rs. 2,40,000; B Rs. 48,000, C-Nil and D-Rs. 8,030. The products can be sold as intermediates i.e., at split-off point without further processing. The sale prices are: A Per litre B Per litre C per litre D* Per Kg. As finished Product 1.84 8.00 6.40 26.67 As Intermediate (a) Calculate the product-wise profit allocating joint costs. (b) Compare the profitability in selling the products with and without further processing. 1.20 4.00 6.40 24.00
The Moody Company produced three joint products at a joint cost of $117,000. Two of these products were processed further. Production and sales were: P Weight 317,000 lbs. $ 262,000 34,250 108,500 lbs. 200,500 Sales Addt'l. Processing Costs $ 217,000 Q 108,500 lbs. R 0 117,000 Assume Q is a by-product and Moody uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R? (Round your final answer to the nearest whole dollar.)
Munoz Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,100 Units × $19) $ 248,900 Labor (13,100 Units × $12) 157,200 Depreciation on manufacturing equipment* 25,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 27,000 Allocated portion of corporate-level facility-sustaining costs 82,000 Total cost to make 13,100 engines $ 609,100 *The equipment has a book value of $108,000 but its market value is zero.Required Determine the maximum price per unit that Munoz would be willing to pay for the engines. Determine the maximum price per unit that Munoz would be willing to pay for the engines, if production increased to 18,650 units. (For all requirements, Round your answers to 2 decimal places.)
The G-Lab Company produced three joint products at a joint cost of $170,000. Two of these products were processed further. Production and sales were: Additional Processing Costs 200,000 0 100,000 Product A B C Weight 500,000 lbs. 600,000 lbs. 700,000 lbs. Sales OA. $113,333.33 B. $92,555.56 C. $66,111.11 D. $47,222.22 245,000 30,000 175,000 If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product A? (Do not round intermediary calculations. Round final answer to the nearest cent.)
Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $144,000 for materials and $288,000 for conversion costs. P-11 has a sales value of $640,000 and P-12 has a sales value of $160,000. Required Using the net realizable value method, assign costs to P-11 and P- 12 for August.
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b) Almond Delites manufactures various types of biscuits. FMF Biscuits Ltd has approached wwwwwww Almond Delites with a proposal to sell the company its top-selling biscuit at a price of $22 000 for 20 000 units. The costs shown are associated with the production of 20 000 units of almond biscuits: Direct materials Direct labour Manufacturing overhead Total cost $12,000 $5,000 $ 8,000 $25,000 The manufacturing overhead consists of $2 000 of variable costs, with the balance being allocated to fixed costs. Assume that 40% of the fixed costs would be avoidable if the almond biscuits were purchased externally rather than produced internally. Required: i) Should Almond Delites make or buy the almond biscuit? ANSWER b (i): ii) What qualitative factors should Almond Delites consider before making its decision? ANSWER b (ii):
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17. Calculate the prime costs and conversion costs if a company incurs the following to produce wine glasses: $4,000 for molten glass, $15,000 paid to employees who create the glasses, and $2,000 paid to employees who repair equipment used in the production facilities. 28. As of January 1, 20Y5, Tippy Cup Co. had a balance of $15,000 for raw materials inventory. The company's ending balance of raw materials inventory totaled $13,900. Every four months, the company purchases 250 pounds of raw materials at $25 a pound. Calculate the cost of direct materials used for the year. 29. Tippy Cup Co. also incurred $10,550 for factory overhead and 250 hours of direct labor at $10.30 per hour. Using the cost of direct materials used calculated in Exercise 28, determine the total manufacturing costs incurred for the year.