I have a cost accounting question. **MediaForum Financial Analysis**MediaForum operates through three main groups: Games, News, and Documentaries. In May, the company incurred $43,200,000 in joint costs for facilities and administration. Below are the financial details, including revenues and separate costs for each group.| **Category** | **Games** | **News** | **Documentaries** ||---------------------|------------|-----------|-------------------|| **Revenue** | $61,272,000| $55,296,000| $340,776,000 || **Separate costs** | $55,872,000| $29,376,000| $199,296,000 |### Task a**Objective**: Determine the joint cost allocated to each operating group using profit before joint cost allocation as the basis for allocation.- **Note**: Compute the profit for each operating area after the allocation.- **Proportions**: Round to the nearest whole percentage and dollar amount to the nearest whole dollar.- **Games**: $0- **News**: $0- **Documentary**: $0- **Total**: $0### Task b**Objective**: Determine the joint cost allocated to each operating group if the allocation is based on revenue.- **Note**: Compute the profit for each operating group after the allocation.- **Proportions**: Round to the nearest whole percentage and dollar amount to the nearest whole dollar.- **Games**: $0- **News**: $0- **Documentary**: $0- **Total**: $0### ExplanationThis financial breakdown helps in understanding how joint costs are allocated using two different bases: profit before allocation and revenue. Proper allocation assists in precise profit calculation for each group, ensuring more accurate financial analysis and reporting.

Joint cost is the aggregate cost of every department working in an organization. These costs are…

MediaForum has three operating groups: Games, News, and Documentaries. In May, the company incurred $43,200,000 of joint cost for facilities and administration. May revenues and separate costs of each group are as follows: Games News Documentaries Revenue $61,272,000 $55,296,000 $340,776,000 Separate costs 55,872,000 29,376,000 199,296,000 a. What amount of joint cost is allocated to each operating group using the profit before joint cost allocation as the basis for allocation? Note: Compute the profit for each operating area after the allocation. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Games News Documentary Total 24 b. What amount of joint cost is allocated to each operating group if the allocation is based on revenue? Note: Compute the profit for each operating group after the allocation. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Games $ News Documentary Total 24

MediaForum has three operating groups: Games, News, and Documentaries. In May, the company incurred $43,200,000 of joint cost for facilities and administration. May revenues and separate costs of each group are as follows: Games News Documentaries Revenue $61,272,000 $55,296,000 $340,776,000 Separate costs 55,872,000 29,376,000 199,296,000 a. What amount of joint cost is allocated to each operating group using the profit before joint cost allocation as the basis for allocation? Note: Compute the profit for each operating area after the allocation. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Games News Documentary Total 24 b. What amount of joint cost is allocated to each operating group if the allocation is based on revenue? Note: Compute the profit for each operating group after the allocation. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Games $ News Documentary Total 24

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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