eBook12-gauge shotgun20-gauge shotgunShow Me HowTotalsJoint Cost Allocation-Physical Units MethodBlake's Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process that ultimately produces 2412-gauge shotguns and 6 20-gauge shotguns and costs a total of $3,600 per batch. After the split-off point, each type of shotgun goes through an additional craftingprocess before it is sold. The additional production process of the 12-gauge shotgun costs $24 per gun, after which it is sold for $174 per gun. The additional productionprocess of the 20-gauge shotgun costs $32 per gun, after which it is sold for $142 per gun.Determine the amount of joint production costs allocated to each type of shotgun using the physical units method.Joint ProductAllocationheck My Work 2 more Check My Work uses remaining.= 0 BPreviousUpdateNext

Solution.. Total Physical Quantities = Units of 12-gauge + Units of 20-guage = 24 + 6 = 30…

Joint Cost Allocation-Physical Units Method Blake's Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process th 12-gauge shotguns and 6 20-gauge shotguns and costs a total of $3,600 per batch. After the split-off point, each type of shotgun goes through a process before it is sold. The additional production process of the 12-gauge shotgun costs $24 per gun, after which it is sold for $174 per gun. TH process of the 20-gauge shotgun costs $32 per gun, after which it is sold for $142 per gun. Determine the amount of joint production costs allocated to each type of shotgun using the physical units method. Joint Product 12-gauge shotgun 20-gauge shotgun Totals Allocation 8

Joint Cost Allocation-Physical Units Method Blake's Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process th 12-gauge shotguns and 6 20-gauge shotguns and costs a total of $3,600 per batch. After the split-off point, each type of shotgun goes through a process before it is sold. The additional production process of the 12-gauge shotgun costs $24 per gun, after which it is sold for $174 per gun. TH process of the 20-gauge shotgun costs $32 per gun, after which it is sold for $142 per gun. Determine the amount of joint production costs allocated to each type of shotgun using the physical units method. Joint Product 12-gauge shotgun 20-gauge shotgun Totals Allocation 8

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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