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Logan's Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $5,000 in joint costs that Logan may allocate using the relative sales value at splitoff or the net realizable value approach. At splitoff, A-1 sells for $22,500 while B grade sells for $52,500, After an additional Investment of S15,000 after splitoff, $5,760 for B grade and $9,240 for A-1, both the products sell for $51,000 What is the difference in allocated costs for the A-1 product assuming applications of the net realizable value and the sales value at splitoff approach? (Round intermediary calculations to four decimal places, XXXXX and your final answer to the nearest whole dollar.) ..... O 1. A-1 Fancy has $900 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. Q 2. A-1 Fancy has $900 more joint costs allocated to it under the net realizable value approach than the

Logan's Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $5,000 in joint costs that Logan may allocate using the relative sales value at splitoff or the net realizable value approach. At splitoff, A-1 sells for $22,500 while B grade sells for $52,500, After an additional Investment of S15,000 after splitoff, $5,760 for B grade and $9,240 for A-1, both the products sell for $51,000 What is the difference in allocated costs for the A-1 product assuming applications of the net realizable value and the sales value at splitoff approach? (Round intermediary calculations to four decimal places, XXXXX and your final answer to the nearest whole dollar.) ..... O 1. A-1 Fancy has $900 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. Q 2. A-1 Fancy has $900 more joint costs allocated to it under the net realizable value approach than the

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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Logan's Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $5,000 in joint costs that Logan may allocate using the relative sales value at splitoff or the net realizable value approach. At splitoff, A-1 sells for $22,500 while B grade sells for $52,500, After an additional Investment of S15,000 after splitoff, $5,760 for B grade and $9,240 for A-1, both the products sell for $51,000 What is the difference in allocated costs for the A-1 product assuming applications of the net realizable value and the sales value at splitoff approach? (Round intermediary calculations to four decimal places, XXXXX. and your final answer to the nearest whole dollar.) .. O 1. A-1 Fancy has $900 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 2. A-1 Fancy has $900 more joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 3. A-1 Fancy has $1,200 more Joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 4. A-1 Fancy has $1,200 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.
Transcribed Image Text:Logan's Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $5,000 in joint costs that Logan may allocate using the relative sales value at splitoff or the net realizable value approach. At splitoff, A-1 sells for $22,500 while B grade sells for $52,500, After an additional Investment of S15,000 after splitoff, $5,760 for B grade and $9,240 for A-1, both the products sell for $51,000 What is the difference in allocated costs for the A-1 product assuming applications of the net realizable value and the sales value at splitoff approach? (Round intermediary calculations to four decimal places, XXXXX. and your final answer to the nearest whole dollar.) .. O 1. A-1 Fancy has $900 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 2. A-1 Fancy has $900 more joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 3. A-1 Fancy has $1,200 more Joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach. O 4. A-1 Fancy has $1,200 less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.
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