None Exercise 11-49 (Algo) Sell or Process Further (LO 11-4)Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs inMay were $574,000. Additional information follows:ProductChem-1UnitsProduced298,000Split-Off$ 230,000Chem-2186,000274,000If Processed FurtherSales Value at AdditionalCostsSales Values$ 33,70030,400$ 270,000300,000Chem-3Chem-4202,000154,000840,000159,600256,400$920,00025,90027,300190,000280,000$ 117,300$ 1,040,000Required:Which, if any, of the four products would you recommend Barrett Chemicals sell at split-off (and not process further)?Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correctanswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question markwill be automatically graded as incorrect.Chem-1Chem-2Chem-3Chem-4

Recommendation for Barrett Chemicals:We should recommend selling Chem-2 and Chem-3 at the split-off…

Answered: Exercise 11-49 (Algo) Sell or Process…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Exercise 11-47 (Algo) Net Realizable Value Method (LO 11-3) Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: If Processed Further Sales Value at Additional Product Chem-1 Chem-2 Units Produced 291,000 Split-Off Costs Sales Values $ 223,000 $ 33,000 $ 263,000 179,000 Chem-3 195,000 Chem-4 147,000 812,000 267,000 152,600 249,400 29,700 293,000 25,200 183,000 26,600 273,000 $ 892,000 $ 114,500 $ 1,012,000 Required: Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May? Note: Round percentages to 2 decimals. Round your final answers to the nearest whole dollar amounts. Product NRV at Split- Off Joint Costs Allocated Chem-1 Chem-2 Chem-3 Chem-4
Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-8, 9) The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $193,000. Additional information follows. If Processed Further Product Units Produced 88,000 64,000 28,000 Sales Value at Split-off $280, 000 250,000 190,000 Sales Values Additional Costs $370, 000 310, о00 280,000 KA $58,000 46,000 34,000 KB KC After the putblication of recent sclentific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $247,800 for every 28,000 units produced. Requlred: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? b. Which, if either, product would you recommend Kyle Company sell at split-off? Complete this questlon by entering your answers In the…
TB MC Qu. 11-82 (Algo) Atkinson, Incorporated, manufactures products A, B, and C... Atkinson, Incorporated, manufactures products A, B, and C from a common process. Joint costs were $141,900. Additional information is as follows: If Processed Further Additional Product Units Produced A B C 5,700 6,950 3,475 16,125 Sales Value at Split-Off Sales Value $ 38,200 60,465 41,700 $ 52,450 77,840 52,125 Costs $ 3,800 10,425 13,900 $ 140,365 $ 182,415 $ 28,125 Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product A? Note: Do not round intermediate calculations.
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: DF1 DF2 BP Total Units produced 27,000 18,000 15,000 60,000 Allocated joint costs ? ? ? $ 560,000 Sales value at split-off $ 561,000 $ 187,000 $ 102,000 $ 850,000 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?
Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-3, 4) Forest Products, Incorporated, manufactures three products (FP-10, FP-20, and FP-40) from a single, joint input. None of the products can be sold without further processing. In November, joint product costs were $241,700. Additional Information follows: Sales Values Product FP-10 FP-20 FP-40 Units Produced 117,000 175,500 97,500 $ 180,750 312,250 85,700 Processing Costs (After Split-Off) $ 29,700 109,700 25,700 The sale of FP-40 has been banned by a recent law. If FP-40 is produced, disposal in an approved manner costs $120,000 for every 97,500 units produced. Required: a. Assuming that Forest Products continues to use the physical quantities method of allocation and to manufacture and sell FP-10 and FP-20. What joint costs would be allocated to FP-10 and FP-20? b. There is a possibility that a market for FP-10 and FP-20 at split-off will develop. In other words, it will be possible to sell the two…
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
Subject-Acounting
ALASKA Company manufactures products F, G and W from a joint process. Joint costs are allocated on the basis of relative sales value at split-off. Additional informaton for the June 20x1 production activity as follows: F G W Total Units produced 50,000 40,000 10,000 100,000 Joint costs ? ? ? P450,000 Sales value at split-off P420,000 P270,000 P60,000 P750,000 Additional costs if processed further 88,000 30,000 12,000 130,000 Sales value if processed further 538,000 320,000 78,000 936,000 Assuming that the 10,000 units of W were processed further and sold for P78,000, what was ALASKA's gross profit on this sale?
None
Agao Chemical Company manufactures three chemicals (NY29, TX38, and CA55) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: NY29 TX38 CA55 Sales value at split-off point P5,000 P16,000 P12,000 Allocated joint costs P6,000 P6,000 P6,000 Sales value after further processing P9,000 P20,000 P18,000 Cost of further processing P2,000 P5,000 P3,000 For which product(s) above would it be more profitable for Agao to sell at the split-off point rather than process further?
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: X Y Z Total Units produced 14,000 10,000 6,000 30,000 Allocated joint costs $ 204,000 $ 90,000 $ 66,000 $ 360,000 Sales value at split-off ? 150,000 110,000 600,000 Additional costs for further processing 38,000 30,000 22,000 90,000 Sales value if processed further 348,000 185,000 147,000 680,000 Based solely on a relevant cost analysis, which of the three products should be processed by Walman beyond the split-off point?

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