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 DF2 BP DF2 ВР DF1 28, 100 19, 100 16,100 $ 569,250 $ 189,750 $ 103, 100 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. Joint Cost Total 63,300 $ 561,100 $ 862, 100
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 DF2 BP DF2 ВР DF1 28, 100 19, 100 16,100 $ 569,250 $ 189,750 $ 103, 100 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. Joint Cost Total 63,300 $ 561,100 $ 862, 100
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
DF2
BP
DF1
28, 100
$ 569,250 $ 189,750
Joint Cost
DF2
19, 100
BP
16,100
?
$ 103, 100
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.
63,300
$ 561,100
$ 862, 100
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