Longwood Corporation processes a liquid into three outputs: K-2, K-4, and K-5. The sales value of each of these products for a single batch follows: K-2 $ 579,600 K-4 428,400 K-5 192,000 The joint costs total $850,000. There are no separable production costs. If K-5 is accounted for as a by-product, its sales are credited to the joint manufacturing costs using method 1 described in the text. Required: a-1. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a joint product? a-2. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a by-product?
Longwood Corporation processes a liquid into three outputs: K-2, K-4, and K-5. The sales value of each of these products for a single batch follows: K-2 $ 579,600 K-4 428,400 K-5 192,000 The joint costs total $850,000. There are no separable production costs. If K-5 is accounted for as a by-product, its sales are credited to the joint manufacturing costs using method 1 described in the text. Required: a-1. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a joint product? a-2. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a by-product?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Longwood Corporation processes a liquid into three outputs: K-2, K-4, and K-5. The sales value of each of these products for a single batch follows:
| K-2 | $ 579,600 |
|---|---|
| K-4 | 428,400 |
| K-5 | 192,000 |
The joint costs total $850,000. There are no separable production costs. If K-5 is accounted for as a by-product, its sales are credited to the joint
Required:
a-1. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a joint product?
a-2. What are the allocated joint costs for the three outputs, if K-5 is accounted for as a by-product?
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