Homework Help is Here – Start Your Trial Now!
Business
Accounting
mated net realizable value method to allocate the joint cost. The cost of product E sold for the yea

mated net realizable value method to allocate the joint cost. The cost of product E sold for the yea

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

(ADDITIONAL INFO)

Sales 

450,000

1,440,000

2,126,250

 

Ethel uses the estimated net realizable value method to allocate the joint cost.

The cost of product E sold for the year ended July 31, 2021 is:

a. 1,470,000

b. 1,440,000

c. 990,000

d. 1,350,000

 

The cost of ending inventory for product D is:

a. 270,000

b. 225,000

c. 180,000

d. 540,000

 

The gross profit (loss) of product F is: 

a. 168,750

b. 101,250

c. 1,226,250

d. (483,750)

Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000
Transcribed Image Text:Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000
Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at split-off with no further processing. E and F require further processing before they can be sold. E is processed in department 2; and F is processed in Department 3. The following is a summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2 Department 3 Direct Materials P1,440,000
Transcribed Image Text:Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at split-off with no further processing. E and F require further processing before they can be sold. E is processed in department 2; and F is processed in Department 3. The following is a summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2 Department 3 Direct Materials P1,440,000
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS