Ms. Roach's company produces two liquids; Liquid X and Liquid Y. These liquids are not separated unless $500,000 processing costs have occurred. At that processing cost 15000 gallons of Liquid X can be sold for $25 per gallon and 5000 gallons of Liquid Y can be sold for $50 per gallon. 1. How would you allocate $500,000 joint cost to Liquid X by the physical units $ 2. How would you allocate $500,000 joint cost to Liquid Y by the physical units $ 3. How would you allocate $500,000 joint cost to Liquid X by the relative sales value method S 4. How would you allocate $500,000 joint cost to Liquid Y by the relative sales value method S 5. Is the process for calculating cost appropriate for this type of product #

Ms. Roach's company produces two liquids; Liquid X and Liquid Y. These liquids are not separated unless $500,000 processing costs have occurred. At that processing cost 15000 gallons of Liquid X can be sold for $25 per gallon and 5000 gallons of Liquid Y can be sold for $50 per gallon. 1. How would you allocate $500,000 joint cost to Liquid X by the physical units $ 2. How would you allocate $500,000 joint cost to Liquid Y by the physical units $ 3. How would you allocate $500,000 joint cost to Liquid X by the relative sales value method S 4. How would you allocate $500,000 joint cost to Liquid Y by the relative sales value method S 5. Is the process for calculating cost appropriate for this type of product #

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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