Keiffer Production manufactures three joint products in a single process. The following information is available for August 2013: Sales value at Product Gallons split off per Gallon JP-4539 4,500 $14 JP-4587 18,000 8 JP-4591 13,500 18 Final Cost after split off selling price $4 $24 5 15 2 22 Allocate the joint cost of $558,000 to the production based on the: a. number of gallons. b. sales value at split-off. c. approximated net realizable values at split-off.
Keiffer Production manufactures three joint products in a single process. The following information is available for August 2013: Sales value at Product Gallons split off per Gallon JP-4539 4,500 $14 JP-4587 18,000 8 JP-4591 13,500 18 Final Cost after split off selling price $4 $24 5 15 2 22 Allocate the joint cost of $558,000 to the production based on the: a. number of gallons. b. sales value at split-off. c. approximated net realizable values at split-off.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Keiffer Production manufactures three joint products in
a single process. The following information is available
for August 2013:
Sales value at
Product Gallons split off per
Gallon
JP-4539 4,500 $14
JP-4587 18,000 8
JP-4591 13,500 18
Final
Cost after
split off
selling
price
$4
$24
5
15
2
22
Allocate the joint cost of $558,000 to the production
based on the:
a. number of gallons.
b. sales value at split-off.
c. approximated net realizable values at split-off.
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