Joint Products A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston pro- duces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all produc- tion required additional separable processing. Total joint cost for the three products is $3,500,000. Johnston Adhesives Company makes three widely used industrial adhesives: A101 A204 B216 135,000 10 115,000 %24 Gallons sold 175,000 14 12 Final sales price per gallon Price at split-off Separable processing cost 10 10 $550,000 $125,000 $625,000

Joint Products A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston pro- duces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all produc- tion required additional separable processing. Total joint cost for the three products is $3,500,000. Johnston Adhesives Company makes three widely used industrial adhesives: A101 A204 B216 135,000 10 115,000 %24 Gallons sold 175,000 14 12 Final sales price per gallon Price at split-off Separable processing cost 10 10 $550,000 $125,000 $625,000

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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Lelime Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool. A6 is manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available: (Click to view the information.) Read the requirements. Requirement 1. What product mix - that is, how many units of A6 and EX4 - will maximize Lelime's operating income? Show your calculations. (Enter an amount in each input cell including zero balances.) Begin by calculating the benefit from only selling A6 or EX4. Contribution margin per hour of the constrained resource Hours of constrained resource X Total contribution margin Less: Lease costs of the high-precision machine Net relevant benefit A6 10 50000 500000 500000 EX4 70 50000 3500000 350000 3150000
What is the joint cost of the firm to be allocated to Seduction and Romance?
Double Company 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 Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,200 24,300 36,300 76,800 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 112,000 $ 46,000 $ 68,000 $ 226,000 Units Produced 16,200 24,300 36,300 76,800 Total Joint Cost $ 3,610,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-1 using the physical measure method is: Multiple Choice $752,083. $761,484. $1,706,289. $1,203,333. $1,142,227.
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Mercedes is assessing which of two windshield suppliersprovides a better environmental design for disassembly. Usingthe tables below, select between PG Glass and Glass Unlimited.
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…
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