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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 Mining $ 482,000 $ 390,000 Products Units sold Units in ending Inventory (December 31) Sales revenue Required: Compute the following Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Metal-A Metal-B Metal-C 236,000 224,000 82,000 $ 1,180,000 82,000 85,000 $ 596,000 $ 205,000 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 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 Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. d. The value of the ending inventory for Metal-C Note: Do not round intermediate calculations. Round your final answer to the neare dollar

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 Mining $ 482,000 $ 390,000 Products Units sold Units in ending Inventory (December 31) Sales revenue Required: Compute the following Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Metal-A Metal-B Metal-C 236,000 224,000 82,000 $ 1,180,000 82,000 85,000 $ 596,000 $ 205,000 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 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 Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. d. The value of the ending inventory for Metal-C Note: Do not round intermediate calculations. Round your final answer to the neare dollar

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Hining $ 482,000 $ 398,000 Products Units sold Units in ending inventory (December 31) Sales revenue Required: Compute the following Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Hetal-A 236,000 82,000 $ 1,180,000 Metal-B 224,000 0 $ 596,000 Hetal-C 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 6. 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 82,000 88,000 $ 205,000 Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. d. The value of the ending inventory for Metal-C Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 4
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 Hining $ 482,000 $ 398,000 Products Units sold Units in ending inventory (December 31) Sales revenue Required: Compute the following Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Hetal-A 236,000 82,000 $ 1,180,000 Metal-B 224,000 0 $ 596,000 Hetal-C 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 6. 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 82,000 88,000 $ 205,000 Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. d. The value of the ending inventory for Metal-C Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 4
Schedule Cost Allocation Prepare a schedule showing the allocation of the $1,663,300 joint cost to AzynePlus and Bethanol using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign. Round your units to the nearest whole unit. Sales value after completion Sales revenue from Byzene Separate processing costs: Department 2 Department 3 Department 4 Additional processing cost for Byzene Estimated net realizable values (method 1 in the text). Schedule Cost Allocation AzynePlus Bethanol Bethanol AzynePlus $ 5,145,000 $ 8,190,000 609.750 Complete this question by entering your answers in the tabs below. Cost Allocation $(516,800) (226,648) h Determine the cost allocation for each product. Note: Do not round intermediate calculations, Round final answers to nearest whole dollars. (2.098,000) (121,060)REE $ 4.890.242 $ 6,092.000 < Schedule Show less A
Transcribed Image Text:Schedule Cost Allocation Prepare a schedule showing the allocation of the $1,663,300 joint cost to AzynePlus and Bethanol using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign. Round your units to the nearest whole unit. Sales value after completion Sales revenue from Byzene Separate processing costs: Department 2 Department 3 Department 4 Additional processing cost for Byzene Estimated net realizable values (method 1 in the text). Schedule Cost Allocation AzynePlus Bethanol Bethanol AzynePlus $ 5,145,000 $ 8,190,000 609.750 Complete this question by entering your answers in the tabs below. Cost Allocation $(516,800) (226,648) h Determine the cost allocation for each product. Note: Do not round intermediate calculations, Round final answers to nearest whole dollars. (2.098,000) (121,060)REE $ 4.890.242 $ 6,092.000 < Schedule Show less A
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