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: DF1 DF2 BP Total Units produced 27,200 18,200 15,200 60,600 Allocated joint costs ? ? ? $ 560,200 Sales value at split-off $ 562,500 $ 187,500 $ 102,200 $ 852,200 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?
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: DF1 DF2 BP Total Units produced 27,200 18,200 15,200 60,600 Allocated joint costs ? ? ? $ 560,200 Sales value at split-off $ 562,500 $ 187,500 $ 102,200 $ 852,200 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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:
| DF1 | DF2 | BP | Total | |
|---|---|---|---|---|
| Units produced | 27,200 | 18,200 | 15,200 | 60,600 |
| Allocated joint costs | ? | ? | ? | $ 560,200 |
| Sales value at split-off | $ 562,500 | $ 187,500 | $ 102,200 | $ 852,200 |
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?
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