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Lane Co. produces main products K and W. The process also yields by-product Z. Net realizable value of by-product Z is subtracted from joint production cost of K and W. The following information pertains to production in July, 2019 at a joint cost of P 54,000. IF PROCESSED FURTHER UNITS PRODUCT PRODUCED 1,000 1,500 500 MARKET VALUE 40,000 35,000 7,000 COST AFTER SPLIT-OFF P 0 K W 3,000

Lane Co. produces main products K and W. The process also yields by-product Z. Net realizable value of by-product Z is subtracted from joint production cost of K and W. The following information pertains to production in July, 2019 at a joint cost of P 54,000. IF PROCESSED FURTHER UNITS PRODUCT PRODUCED 1,000 1,500 500 MARKET VALUE 40,000 35,000 7,000 COST AFTER SPLIT-OFF P 0 K W 3,000

FINANCIAL ACCOUNTING
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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3. If Lane uses the net realizable value method of allocating joint costs, how much of the joint cost should be allocated to product K. P 18,800 P 20,000 P 26,667 d. а. b. C. P 27,432
Transcribed Image Text:3. If Lane uses the net realizable value method of allocating joint costs, how much of the joint cost should be allocated to product K. P 18,800 P 20,000 P 26,667 d. а. b. C. P 27,432
Lane Co. produces main products K and W. The process also yields by-product Z. Net realizable value of by-product Z is subtracted from joint production cost of K and W. The following information pertains to production in July, 2019 at a joint cost of P 54,000. UNITS IF PROCESSED FURTHER PRODUCT PRODUCED COST AFTER SPLIT-OFF P 0 MARKET VALUE 40,000 35,000 7,000 K 1,000 1,500 500 W 0 3,000
Transcribed Image Text:Lane Co. produces main products K and W. The process also yields by-product Z. Net realizable value of by-product Z is subtracted from joint production cost of K and W. The following information pertains to production in July, 2019 at a joint cost of P 54,000. UNITS IF PROCESSED FURTHER PRODUCT PRODUCED COST AFTER SPLIT-OFF P 0 MARKET VALUE 40,000 35,000 7,000 K 1,000 1,500 500 W 0 3,000
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