Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Labor Manufacturing overhead Products Units sold Units in ending inventory (December 31) Sales revenue Mining $ 462,000 $ 378,000 Required: Compute the following: Note: Do not round intermediate calculations. d. The value of the ending inventory for Metal-C. Note: Do not round intermediate calculations. a. Net realizable value of Metal-C b. Joint costs c. Cost of Metal-B sold d. Ending inventory for Metal-C Plant A $ 390,000 $ 327,600 $ $ Plant B $ 270,000 $ 126,000 Metal-A Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs. a. The net realizable value of Metal-C for the period ended December 31. b. The joint costs for the period ended December 31 to be allocated. c. The cost of Metal-B sold for the period ended December 31. 300,000 840,000 Metal-B 144,000 216,000 72,000 48,000 72,000 $ 853,200 $ 576,000 $ 180,000 Metal-C 0
Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Labor Manufacturing overhead Products Units sold Units in ending inventory (December 31) Sales revenue Mining $ 462,000 $ 378,000 Required: Compute the following: Note: Do not round intermediate calculations. d. The value of the ending inventory for Metal-C. Note: Do not round intermediate calculations. a. Net realizable value of Metal-C b. Joint costs c. Cost of Metal-B sold d. Ending inventory for Metal-C Plant A $ 390,000 $ 327,600 $ $ Plant B $ 270,000 $ 126,000 Metal-A Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs. a. The net realizable value of Metal-C for the period ended December 31. b. The joint costs for the period ended December 31 to be allocated. c. The cost of Metal-B sold for the period ended December 31. 300,000 840,000 Metal-B 144,000 216,000 72,000 48,000 72,000 $ 853,200 $ 576,000 $ 180,000 Metal-C 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off
into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing.
Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related
data for the period ended December 31:
Process:
Labor
Manufacturing overhead
Products
Units sold
Units in ending inventory (December 31)
Sales revenue
Mining
$ 462,000
$ 378,000
Required:
Compute the following:
Note: Do not round intermediate calculations.
d. The value of the ending inventory for Metal-C.
Note: Do not round intermediate calculations.
a. Net realizable value of Metal-C
b. Joint costs
c. Cost of Metal-B sold
d. Ending inventory for Metal-C
Plant A
$ 390,000
$ 327,600
$
$
Plant B
$ 270,000
$ 126,000
Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net
realizable value method to allocate joint costs.
Metal-A
216,000
72,000
$ 853,200
a. The net realizable value of Metal-C for the period ended December 31.
b. The joint costs for the period ended December 31 to be allocated.
c. The cost of Metal-B sold for the period ended December 31.
300,000
840,000
Metal-B
144,000
Metal-C
72,000
48,000
$ 576,000 $ 180,000
0
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