Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5) Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF2 DF1 27,200 ? 18,200 $ 562,500 $ 187,500 $ 102,200 Joint Cost BP 15,200 ? Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 60,600 $ 560,200 $ 852,200
Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5) Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF2 DF1 27,200 ? 18,200 $ 562,500 $ 187,500 $ 102,200 Joint Cost BP 15,200 ? Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 60,600 $ 560,200 $ 852,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5)
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company
accounts for the revenues from its by-product sales as other income. Additional information follows:
Units produced
Allocated joint costs
Sales value at split-off
DF1
DF2
BP
DF1
27,200
?
$ 562,500 $ 187,500
Joint Cost
DF2
18,200
?
BP
15,200
?
$ 102,200
Required:
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to
each of the joint products DF1 and DF2 and to the by-product, BP?
Note: Do not round intermediate calculations.
Total
60,600
$ 560,200
$ 852,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3182f1c-7375-4a50-8088-f06a8a8e9532%2F0d511f73-1b1e-47ed-aff2-1d7c78366548%2Forc398x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5)
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company
accounts for the revenues from its by-product sales as other income. Additional information follows:
Units produced
Allocated joint costs
Sales value at split-off
DF1
DF2
BP
DF1
27,200
?
$ 562,500 $ 187,500
Joint Cost
DF2
18,200
?
BP
15,200
?
$ 102,200
Required:
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to
each of the joint products DF1 and DF2 and to the by-product, BP?
Note: Do not round intermediate calculations.
Total
60,600
$ 560,200
$ 852,200
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