Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 27,000 ? $ 561,000 X Answer is complete but not entirely correct. DF1 DF2 BP Joint Cost $343,500 X $ 114,500 x $ 0 DF2 18,000 ? $ 187,000 BP 15,000 ? $ 102,000 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. Total 60,000 $ 560,000 $ 850,000
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 27,000 ? $ 561,000 X Answer is complete but not entirely correct. DF1 DF2 BP Joint Cost $343,500 X $ 114,500 x $ 0 DF2 18,000 ? $ 187,000 BP 15,000 ? $ 102,000 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. Total 60,000 $ 560,000 $ 850,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company
accounts for the revenues from its by-product sales as other income. Additional information follows:
Units produced
Allocated joint costs
Sales value at split-off
DF1
27,000
?
$ 561,000
Answer is complete but not entirely correct.
Joint Cost
$ 343,500 X
$ 114,500
$
0
DF1
DF2
BP
DF2
18,000
?
$ 187,000
BP
15,000
?
$ 102,000
Total
Required:
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to
each of the joint products DF1 and DF2 and to the by-product, BP?
Note: Do not round intermediate calculations.
60,000
$ 560,000
$ 850,000
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