?? Euclid Corporation processes a patented chemical, P-1, andproduces two outputs, P-11, and P-12. In August, the costs toprocess P-1 are $152,000 for materials and $290,000 forconversion costs. P-11 has a sales value of $643,000 and P-12 hasa sales value of $172,000.Using the net realizable value method, assign costs to P-11 andP-12 for August.

Explanation of Net Realizable Value (NRV) Method:The Net Realizable Value (NRV) method is a cost…

Answered: Euclid Corporation processes a patented…

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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Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $165,000 for materials and $330,000 for conversion costs. P-11 has a sales value of $712,000 and P-12 has a sales value of $178,000. Required: Using the net realizable value method, assign costs to P-11 and P-12 for August. (Do not round intermediate calculations.)
Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $144,000 for materials and $288,000 for conversion costs. P-11 has a sales value of $640,000 and P-12 has a sales value of $160,000. Required Using the net realizable value method, assign costs to P-11 and P- 12 for August.
Sunland uses DM of $48,000 and incurs DL and MOH costs of $61,000 and $28,000, respectively, in a single process that results in two main products, Tex and Mex. Product Tex, which has an immediate sales value of $92,000, is further processed at a cost of $43,000 in order to increase its sales value to $150,000. How much are Sunland's joint costs, and to which products will they be assigned? How much are Sunland's separable costs, and to which products will they be assigned? Total joint costs Total separable costs $ Costs Assigned to
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,000 gallons of product A and 1,600 gallons of product B to the split-off point costs $5,900. The sales value at split-off is $2.00 per gallon for product A and $25.00 per gallon for product B. Product 8 requires additional separable processing beyond the split-off point at a cost of $2.50 per gallon before it can be sold at a price of $34 per gallon. Required: What is the company's cost to produce 1,600 gallons of product B? Product cost
Wildhorse uses DM of $47,000 and incurs DL and MOH costs of $55,000 and $27,000, respectively, in a single process that results in two main products, Tex and Mex. Product Tex, which has an immediate sales value of $86,000, is further processed at a cost of $42.000 in order to increase its sales value to $160,000. How much are Wildhorse's joint costs, and to which products will they be assigned? How much are Wildhorse's separable costs, and to which products will they be assigned? Total joint costs $ Total separable costs $ en Costs Assigned to (
Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $1,084,000 for materials and $644,000 for conversion costs. The results of the processing follow: Units Produced Sales Value per Unit Alpha Beta 31,000 $ 9.60 24,800 Gamma 6,200 18.00 80.00 Required: Assign costs to Alpha, Beta, and Gamma for February using the net realizable value method. Product Cost Assigned Alpha Beta Gamma Total S 0
Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor $12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)
The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,500 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 75,000 75,000 $ 210,000 $ 15,000 $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 $ 10,000 $ 12.50 Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total…
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 4,300 gallons of product A and 1,400 gallons of product B to the split-off point costs $5,200. The sales value at split-off is $3.00 per gallon for product A and $21.50 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.80 per gallon before it can be sold at a price of $34 per gallon. Required: What is the company’s cost to produce 1,400 gallons of product B? Question 2. Webster Company produces 30,000 units of product A, 25,000 units of product B, and 16,500 units of product C from the same manufacturing process at a cost of $405,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $25 for A, $10 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster…
The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,200 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 60,000 60,000 $ 168,000 $ 12,000 $ 6.00 Bit Yang 48,000 48,000 $ 50,000 $ 10,000 $ 12.50 Units sold 12,000 12,000 $ Units produced Separable processing costs-variable Separable processing costs-fixed Sales price $ 1.50 Total joint costs for Marshall in the recent month are $176,800, of which $76,024 is a variable cost. Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each…
Chemical Corporation produces liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative sales value at split-off. It costs $4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is $10 per gallon for Product A and $14 for Product B. Product B requires an additional process beyond split-off at a cost of $2 per gallon before it can be sold. What is Chemical's cost to produce 1,000 gallons of Product B? Choose... Choose... $4,860 $5,360 $3,360 $5,040
Alphabet Soup Inc jointly produces A, B, and C at a joint cost of $100,000. The company uses the production method for byproducts and has estimated that B is a byproduct of manufacturing A and C with an estimated NRV of $6,000. The estimated NRVS of A and C are $80,000 and $80,000, respectively. If Alphabet Soup uses the NRV method in allocating joint costs, what will the cost allocation be? Select one: O a. $49,000 to A, $2,000 to B, and $49,000 to C. O b. $48,000 to A, $2,000 to B, and $48,000 to C. O c. $47,000 to A, $0 to B, and $47,000 to C. O d. $50,000 to A, $0 to B, and $50,000 to C. cross out cross out cross out cross out

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