In the process of making its quilts, Coronado Company ends up with many small trimmings of fabric and batting that it is able to sell to a pillow manufacturer as stuffing for its pillows. Coronado considers these trimmings as by-products, and it uses the sales method to account for them. The trimmings can be sold for $460, while the joint process costs are $7,700. If the quilts are worth $22,000 at the time of completion, how much of the joint costs will be allocated to the trimmings? How much revenue will Coronado record when the trimmings are sold? (Do not leave any answer field blank. Enter O for amounts.) Allocated joint costs to the trimmings Revenue when the trimmings are sold $ $
In the process of making its quilts, Coronado Company ends up with many small trimmings of fabric and batting that it is able to sell to a pillow manufacturer as stuffing for its pillows. Coronado considers these trimmings as by-products, and it uses the sales method to account for them. The trimmings can be sold for $460, while the joint process costs are $7,700. If the quilts are worth $22,000 at the time of completion, how much of the joint costs will be allocated to the trimmings? How much revenue will Coronado record when the trimmings are sold? (Do not leave any answer field blank. Enter O for amounts.) Allocated joint costs to the trimmings Revenue when the trimmings are sold $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Nik.1
Transcribed Image Text:In the process of making its quilts, Coronado Company ends up with many small trimmings of fabric and batting that it is able to sell to
a pillow manufacturer as stuffing for its pillows. Coronado considers these trimmings as by-products, and it uses the sales method to
account for them. The trimmings can be sold for $460, while the joint process costs are $7,700. If the quilts are worth $22,000 at the
time of completion, how much of the joint costs will be allocated to the trimmings? How much revenue will Coronado record when the
trimmings are sold? (Do not leave any answer field blank. Enter O for amounts.)
Allocated joint costs to the trimmings
Revenue when the trimmings are sold
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education