Home Formulas Data Insert Page Layout Review View в Corn Starch Joint Costs $321,000 Corn Syrup 2 Joint costs (costs of processing corn to splitoff point) 3 Separable cost of processing beyond splitoff point 4 Beginning inventory (cases) 5 Production and Sales (cases) 6 Ending inventory (cases) 7 Selling price per case $430,560 $94,740 12,900 6,500 $52 $25 Allocate the $321,000 joint costs using the NRV method. Required

Home Formulas Data Insert Page Layout Review View в Corn Starch Joint Costs $321,000 Corn Syrup 2 Joint costs (costs of processing corn to splitoff point) 3 Separable cost of processing beyond splitoff point 4 Beginning inventory (cases) 5 Production and Sales (cases) 6 Ending inventory (cases) 7 Selling price per case $430,560 $94,740 12,900 6,500 $52 $25 Allocate the $321,000 joint costs using the NRV method. Required

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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Activity-Based Supplier CostingLevy Inc. manufactures tractors for agricultural usage. Levy purchases the engines neededfor its tractors from two sources: Johnson Engines and Watson Company. The Johnsonengine has a price of $1,000. The Watson engine is $900 per unit. Levy produces andsells 22,000 tractors. Of the 22,000 engines needed for the tractors, 4,000 are purchasedfrom Johnson Engines, and 18,000 are purchased from Watson Company. The production manager, Jamie Murray, prefers the Johnson engine. However, Jan Booth, purchasingmanager, maintains that the price difference is too great to buy more than the 4,000units currently purchased. Booth also wants to maintain a significant connection withthe Johnson source just in case the less expensive source cannot supply the needed quantities. Jamie, however, is convinced that the quality of the Johnson engine is worth theprice difference.Frank Wallace, the controller, has decided to use activity costing to resolve the issue. Thefollowing…
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Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows: Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Regular models Deluxe models Regular Model $12,000,000 Revenue 7,200,000 $4,800,000 1,200,000 $3,600,000 units Deluxe Model units $10,880,000 6,528,000 $4,352,000 960,000 $3,392,000 Total $22,880,000 13,728,000 Required: 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. $9,152,000 2,160,000 $6,992,000 1,729,600 $5,262,400 2. Using information only from the total column of the income statement, compute the sales revenue…
The jarvis corporation produces bucket loader assemblies for the tractor industry. The product has a long term life expectancy. Jarvis has a traditional manufacturing and inventory system. Jarvis is considering the installation of a just-in-time inventory system to improve its cost structure. In doing a full study using its manufacturing engineering team as well as consulting with industry JIT experts and the main vendors and suppliers of the components Jarvis uses to manufacture the bucket loader assemblies, the following incremental cost-benefit relevant information is available for analysis: The Jarvis cost of investment capital hurdle rate is 15%. One time cost to rearrange the shop floor to create the manufacturing cell workstations is $275,000. One time cost to retrain the existing workforce for the JIT required skills is $60,000. Anticipated defect reduction is 40%. Currently there is a cost of quality defect assessment listed as $150,000 per year. The setup time for…
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