Joint Cost Allocation-Market Value at Split-off MethodGripturn Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint productionmolding process costing $28,000 per batch and producing 1,800 standard door handles and 900 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: thestandard style for $10 per door handle and the curved style for $5 per door handle.Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.Joint ProductStandard door handleCurved door handleTotalsAllocation

The objective of the question is to allocate the joint production costs to the two different styles…

Answered: Joint Cost Allocation-Market Value at…

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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Edge Manufacturing produces two types of entry doors: Deluxe andStandard. The assignment basis for support costs has been directlabor dollars. For 2009, Edge Manufacturing compiled the followingdata for the two products:Deluxe StandardSales units $50,000 $400,000Sales price per unit $650.00 $475.00Direct material and labor costs perunit$180.00 $130.00Manufacturing support costs per unit $ 80.00 $120.00Last year, Edge Manufacturing purchased an expensive roboticssystem to allow for more decorative door products in the deluxeproduct line. The CFO suggested that an ABC analysis could bevaluable to help evaluate a product mix and promotion strategy for thenext sales campaign.She obtained the following ABC information for 20X5:Activity Cost Driver Cost Total Deluxe StandardSetups # of setups $ 500,000 500 400 100Machinerelated# of machinehours$44,000,000 600,000 300,000 300,000Packing # of shipments $ 5,000,000 250,000 50,000 200,000N.B.: # = numberRequired:a. Using the activity-based…
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $5 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and each Goalpost shirt requires 30 minutes of machine time. Assume that a maximum of 49,830 units of each team shirts can be sold. Required: If required, round your answers to the nearest whole number. 1. What is the contribution margin per hour of machine time for each type of team shirts? Contribution Margin Homerun $fill in the blank 1 Goalpost $fill in the blank 2 2. What is the optimal mix of team shirts? Optimal Mix Homerun fill in the blank 3 units Goalpost fill in…
Joint Cost Allocation-Weighted Average Method Konami Code Gaming produces two types of high-end gaming controllers, one with a casing made of a polymer that looks like walnut wood and another with a casing made with a polymer that looks like red oak. The casings are made through a joint production molding process that produces 294 red oak casings and 252 walnut casings at the split-off point. The polymer for the red oak casings requires twice as much cooling time as the polymer for the walnut casings, although all casings are removed from the joint molding process at the same time (i.e., once the cooling for the red oak casings is complete). The joint production process costs a total of $5,000. Assuming the company allocates joint costs using the weighted average method based on the required cooling time of the two joint products, determine the amount of joint production costs allocated to each type of casing using the weighted average method. Joint Product Red oak casing Walnut casing…
PT Agile Box produces products 1,2 and 3 from one combined product process. Information relating to the allocation of combined production costs is as follows Production Product Points / Market / unit Volume Units price 1.200 unit 3 200.000 600 unit 250.000 3 500 unit 4 350.000 Total 2.300 unit Based on this data, you allocate a joint production cost of IDR 345,000,000 to each product and calculate the cost / unit of each product if PT DZAKI uses the following alternatives: a. Average unit method b. Weighted average method (based on points /units) 2. 1, 2.
College Life produces sweatshirts for college organizations and uses hybrid costing. It reports the following for its fabrication process. Customers choose screen-printed or embroidered logos. Direct materials Conversion Fabrication process costs Customer choices-Logo types Screen-printed Embroidered Required: a. Compute the cost per unit for both the screen-printed and embroidered sweatshirts. b. If the company has a target markup of 30% above cost, compute the selling price for each type of sweatshirt. c. For the current period, the company added direct materials into production that should have produced 5,700 sweatshirts. Actual production was 5,415 (nondefective) sweatshirts. Compute the yield for this period. Express the answer in percent. Required 1 Required 2 Required 3 Per Unit $ 26 13 Complete this question by entering your answers in the tabs below. $39 $ 6 $ 12 Yield For the current period, the company added direct materials into production that should have produced 5,700…
Subject: acounting
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 25,000 36,000 77,000 Price (after addt’l processing) $ 30 $ 15 $ 40 Separable Processing cost $ 179,000 $ 72,000 $ 107,000 $ 358,000 Units Produced 16,000 25,000 36,000 77,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
Dinesh
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $38, 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break - even vases fill in the blank 1 units Break - even figurines fill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5, 280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break -…
Joint Cost Allocation-Net Realizable Value Method Lily's Lemonade Stand makes three types of lemonade: pure, raspberry, and strawberry. The lemonade is produced through a joint mixing process that costs a total of $30 per batch. One batch produces 32 cups of pure lemonade, 21 cups of strawberry lemonade, and 21 cups of raspberry lemonade. After the split-off point, all three lemonades can be sold for $0.80 per cup, but strawberry and raspberry lemonade can be processed further by adding artificial coloring and flavoring and sold for $0.95 and $1.00 per cup, respectively. It is estimated that these additional processing costs are $0.75 and $1.80 per batch for strawberry and raspberry lemonade, respectively. Allocate the joint costs of production to each product using the net realizable value method. Joint Product Pure lemonade Strawberry lemonade Raspberry lemonade Totals Allocation
Joint Cost Allocation—Physical Units Method Board-It, Inc., produces the following types of 2 × 4 × 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of $710 per batch. Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.

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