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Crane 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 $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.

Crane 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 $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.

FINANCIAL ACCOUNTING
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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Crane 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 $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.
Transcribed Image Text:Crane 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 $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.
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