Crane Production Company manufactures two products from a joint process. The joint process costs $37,000. Both products must be processed past the split-off point to be marketable. White sugar produces 680 units or 37,000 lbs., incurs separable costs of $5 per unit, and has a market price of $25. Brown sugar produces 2,030 units or 74.500 lbs., incurs separable costs of $10 per unit, and has a market price of $20. Using the sales value at split-off method to allocate joint costs, how much joint costs will be allocated to each product? (Do not round the intermediate calculations. Round answers to O decimal places, eg. 5,275.) White Sugar Brown Sugar Joint Costs

Crane Production Company manufactures two products from a joint process. The joint process costs $37,000. Both products must be processed past the split-off point to be marketable. White sugar produces 680 units or 37,000 lbs., incurs separable costs of $5 per unit, and has a market price of $25. Brown sugar produces 2,030 units or 74.500 lbs., incurs separable costs of $10 per unit, and has a market price of $20. Using the sales value at split-off method to allocate joint costs, how much joint costs will be allocated to each product? (Do not round the intermediate calculations. Round answers to O decimal places, eg. 5,275.) White Sugar Brown Sugar Joint Costs

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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Integrity Company manufactures two joint products, R and F. Integrity produced 12,000 units of product R with a split-off sales value of P90,000. However, if R were to be processed further, additional cost of P6,000 will be incurred but the sales value will increase to P120,000. Integrity produced 6,000 units of product F with a split-off sales value of P60,000. However, if F were to be processed further, additional cost of P7,200 will be incurred but the sales value will go up to P72,000.Under the market value method, the allocation to product R from the total joint cost is P54,000. How much is the total joint cost?
Jorioz Co makes joint products X and Y. $120,000 joint processing costs are incurred. At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with selling prices of $1.20 for X and $1.50 for Y. The units of X could be processed further to make 8,000 units of product Z. The extra costs incurred in this process would be fixed costs of $1,600 and variable costs of $0.50 per unit of input. The selling price of Z would be $2.25. What would be the outcome if product X is further processed? O $600 loss $400 gain O $3,900 gain O $1,600 loss
XYZ Corporation manufactures two products out of a joint process-A and B. The joint costs incurred are $197,000 for a standard production run that generates 80,000 pounds of A and 20,000 pounds of B. A can sell for $6.00 per pound whereas B sells for $5.00 per pound. If additional processing costs beyond the splitoff point are $2.00 per pound for A and $1.00 per pound for B, the amount of joint cost of each production run allocated to A using the constant gross-margin percentage NRV method is: $152,000. $312,000. $65,000. $45,000.
Atlas Foods produces three supplemental food products simultaneously through a refining process costing $85,000. The joint products, Alfa and Betters, have a final selling price of $8 per pound and $5 per pound, respectively, after additional processing costs of $3 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split- off point for $2.50 per pound. Additional information are as follows: Alfa - 15,000 pounds of Alfa, a popular but relatively rare grain supplement of having a caloric value of 8,800 calories/pound. Betters - 5,000 pounds of Betters, a flavouring material high in carbohydrates with a caloric value of 12,000 calories/pound. Morefeed - 2,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories/pound. Questions: 1. Assuming Atlas Foods does not inventory Morefeed, the by-product, the joint cost to be allocated to Betters using the net realizable method is?
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Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: e. WC's taxable income (loss) without the dividend income or the DRD is $(500,000). Deductible DRD
Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $81,000. Sales values and costs were as follows: Product Units Made Sales Price at Split-Off If Processed Further Sales Value Separable Cost X 12,000 $ 43,000 $ 81,000 $ 10,500 Y 4,000 86,000 96,000 7,500 If the joint production costs are allocated based on the relative-sales-value method, what woukd be the amount of joint cost assigned to product X ?
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Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs ofthis process were $50,000, and 14,000 units of overs and 36,000 units of unders were produced.Separable processing costs beyond the split-off point were as follows: overs, $18,000; unders,$23,040. Overs sell for $2.00 per unit; unders sell for $3.14 per unit.Required:1. Allocate the $50,000 joint costs using the estimated net realizable value method.2. Suppose that overs could be sold at the split-off point for $1.80 per unit. Should Pacheco sellovers at split-off or process them further? Show supporting computations.
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