Northern Company processes 100 gallons of raw materials into 75 gallons of product GS-50 and 25 gallons of GS-80. GS-50 is further processed into 50 gallons of product GS-505 at a cost of $7,700, and GS-80 is processed into 50 gallons of product GS 805 at a cost of $6,425. The production process starts at point 1. A total of $20,000 in joint manufacturing costs are incurred in reaching point 2.Point 2 is the split-off point of the process that manufactures GS-50 and GS-80. At this point, GS-50 can be sold for $800 a gallon, and GS-80 can be sold for $160 a gallon. The process is completed at point 3-products GS-505 and GS-805 have a sales price of $600 a gallon and $240 a gallon, respectively. Required: Allocate the joint product costs and then compute the cost per unit using each of the following methods: (1) physical measure, (2) sales value at split-off, and (3) net realizable value. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) (1) Physical measure (2) Sales value at split-off (3) Net realizable value GS-50 cost per unit GS-505 cost per unit GS-80 cost per unit GS-805 cost per unit Total cost per unit $ $ 0 0 Total cost per unit $ 0

Northern Company processes 100 gallons of raw materials into 75 gallons of product GS-50 and 25 gallons of GS-80. GS-50 is further processed into 50 gallons of product GS-505 at a cost of $7,700, and GS-80 is processed into 50 gallons of product GS 805 at a cost of $6,425. The production process starts at point 1. A total of $20,000 in joint manufacturing costs are incurred in reaching point 2.Point 2 is the split-off point of the process that manufactures GS-50 and GS-80. At this point, GS-50 can be sold for $800 a gallon, and GS-80 can be sold for $160 a gallon. The process is completed at point 3-products GS-505 and GS-805 have a sales price of $600 a gallon and $240 a gallon, respectively. Required: Allocate the joint product costs and then compute the cost per unit using each of the following methods: (1) physical measure, (2) sales value at split-off, and (3) net realizable value. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) (1) Physical measure (2) Sales value at split-off (3) Net realizable value GS-50 cost per unit GS-505 cost per unit GS-80 cost per unit GS-805 cost per unit Total cost per unit $ $ 0 0 Total cost per unit $ 0

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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