eBook Joint Cost Allocation-Weighted Average Method Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company's core operation but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of woc chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Manageme at Carving Creations estimates that for the time it takes to produce 10 cubic yards of wood chips in the joint production process, only 2 cubic yards of sawdust are produced. Given this information, allocate the joint costs of production to each product using the weighted average method. Joint Product Allocation Sawdust Wood chips Show Me How Totals

eBook Joint Cost Allocation-Weighted Average Method Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company's core operation but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of woc chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Manageme at Carving Creations estimates that for the time it takes to produce 10 cubic yards of wood chips in the joint production process, only 2 cubic yards of sawdust are produced. Given this information, allocate the joint costs of production to each product using the weighted average method. Joint Product Allocation Sawdust Wood chips Show Me How Totals

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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Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be Isold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Product X Product Y Total $ 16,800 $16,800 $33,600 $24,000 $24,000 $ 48,000 $33,700 Costs of further processing $ 15,000 $18,700 Sales value after further processing $35,500 $ 45,100 $80,600 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point? O $20,500 ($3,500) $3,700 $27,700
I need answers to the following questions: Fritz Co. Produces 2 Products "Maria and Rose" , and 1 by-product "Sina" Total Joint Cost is P3,840,000. The by product however would need an additional cost of P180,000 to fully utilize Sina. The Cost is allocated based on Net Realizable Value method, while the by Product will be accounted for using the Cost Reduction Method. How much is the Adjusted Joint Cost? This will pertain to #12 to #15 (IMAGE) Using the NRV Method, How much cost would be allocated to Maria? Using the NRV Method, How much cost would be allocated to Rose? How much is the total Gain in the by product if the Company opted for the Sales Method?
Compute for the joint cost allocated to Reta. Land Company produces joint products Jana and Reta, together with by-product Bynd. Jana is sold at split-off, but Reta and Bynd undergo additional processing. Production data pertaining to these proiticts follow: Jana Reta Bynd Total Joint costs: Variable P88,000 148,000 Fixed Separable costs: P120,000 90,000 Variable 123,000 Fixed Profit Production (lbs.) Sales price/lbs. P3,000 1,000 1,000 10,000 P 1.10 92,000 50,000 P 4.00 40,000 P 7.50 100,000 There is no beginning or ending inventories. materials are spoiled in production. No
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CONSO Inc. manufactures joint products ALT and TAB, and a by-product DEL. Costs are assigned to the joint products by the net realizable value or final market value method which considers further processing costs in subsequent operations. It is the policy of CONSO Inc. to account for its by-product by market value or reversal cost method or deduction of net realizable value of by-product from the joint manufacturing costs of main products. The total manufacturing costs for 100,000 units were Php 1,520,000.00 during the year. Production and costs data follow: (a)Product Name: ALT, units produced:60,000, sales price per unit: Php 70.00, Further processing cost per unit Php 20.00 (b)Product Name: TAB, units produced:30,000, sales price per unit: Php 25.00, Further processing cost per unit Php 5.00 (C)Product Name: DEL, units produced:10,000, sales price per unit: Php 10.00, Further processing cost per unit Php 30.00, Selling and admin expense per unit, Php 5.00. 1.What is the value of DEL…
Sell-or-Process-Further Decision; Product Mix Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are producedas part of a joint manufacturing process. For example, GR37, a coarse cleaning powder meantfor commercial sale, costs $1.60 a pound to make and sells for $2.00 per pound. A portion ofthe annual production of GR37 is retained for further processing in a separate department whereit is combined with several other ingredients to form SilPol, which is sold as a silver polish,at $4.00 per unit. The additional processing requires ¼ pound of GR37 per unit; additionalprocessing costs amount to $2.50 per unit of SilPol produced. Variable selling costs forSilPol average $0.30 per unit. If production of SilPol were discontinued, $5,600 of costs inthe processing department would be avoided. Cantel has, at this point, unlimited demand for,but limited capacity to produce, product GR37.Required1. Calculate the minimum number of units…
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SEARCH Split Company produces three products — X, Y, and Z — 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. Last year all three products were processed beyond split-off. Joint production costs for the year were $150,000. Sales values and costs needed to evaluate Split's production policy follow. Product Units Produced Sales Value at Split Off If Processed Further Sales Value Additional Costs x 10,000 $ 47,500 $ 117,500 $ 8,700 y 3,000 37,500 62,500 18,000 z 3,000 46,000 60,000 24,000 The amount of joint costs allocated to product Z using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company Incurred costs of $36,000. Product Y weighs 15 pounds and product Z weighs 85 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. B on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation $ Product Z allocation $ D
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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. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off DBB-1 18,000 $ 65 $ 130,000 18,000 $25 DBB-2 27,000 $50 $ 64,000 27,000 $ 35 The amount of joint costs allocated to product DBB-1 using the physical measure method is: DBB-3 39,000 $75 $ 86,000 39,000 $ 55 Total 84,000 $ 280,000. 84,000 $ 3,700,000