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 Required: DF1 28,400 ? DF2 19,400 ? $ 571,500 $ 190,500 BP 16,400 ? $ 103,400 Total 64,200 $ 561,400 $ 865,400 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.
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 Required: DF1 28,400 ? DF2 19,400 ? $ 571,500 $ 190,500 BP 16,400 ? $ 103,400 Total 64,200 $ 561,400 $ 865,400 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Required:
DF1
28,400
?
DF2
19,400
?
$ 571,500
$ 190,500
BP
16,400
?
$ 103,400
Total
64,200
$ 561,400
$ 865,400
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
DF1
$ 343,500 ×
DF2
$ 114,500 ×
BP
$ 103,400 ×
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