Double Company produces three products — DBB-1, DBB-2, and DBB-3 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. Key information about Double's production, sales, and costs follows. DBB-1DBB-2DBB-3TotalUnits Sold19,80029,70041,70091,200Price (after additional processing)$ 65$ 50$ 75 Separable Processing cost$ 136,125$ 54,450$ 76,450$ 267,025Units Produced19,80029,70041,70091,200Total Joint Cost $ 4,360,000Sales Price at Split-off$ 25$ 35$ 55 The amount of joint costs allocated to product DBB-3 using the net realizable value method is: Multiple Choice $2,361,764. $1,228,747. $1,107,364. $1,150,875. $890,872.

Sales after further Processing = sales per unit after further processing * units Produced Net…

Answered: Double Company produces three products…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 3CMA: Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses...

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Double Company produces three products — DBB-1, DBB-2, and DBB-3 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. Key information about Double's production, sales, and costs follows.

	DBB-1	DBB-2	DBB-3	Total
Units Sold	19,800	29,700	41,700	91,200
Price (after additional processing)	$ 65	$ 50	$ 75
Separable Processing cost	$ 136,125	$ 54,450	$ 76,450	$ 267,025
Units Produced	19,800	29,700	41,700	91,200
Total Joint Cost				$ 4,360,000
Sales Price at Split-off	$ 25	$ 35	$ 55

The amount of joint costs allocated to product DBB-3 using the net realizable value method is:

Multiple Choice

$2,361,764.
$1,228,747.
$1,107,364.
$1,150,875.
$890,872.

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