NW Flour Company buys 1 input of standard flour and refines it using a special siting process to 3 cups of baking flour and 9 aups of bread flour. In May, NW bought 11,200 inputs of flour for $91,500. NW spent another S48,300 on the special siting process. The baking flour can be sold for $3.70 per cup and the bread flour for $5.00 per cup. NW puts the baking flour through a second process so it is super fine. This costs an additional S1 per cup of baking flour and the process yields - cup of super-fine baking flour for every one cup of baking flour used. The super-fine baking flour sells for $9.90 per oup. Reguired Super-Fine Baking Flour Bread Flour Total Final sales value of total production 166.320 $ 504,000 Deduct separable costs 33.00 S Net realizable value splitoff 132.720 $ 504,000 S 636,720 0.2084 0.7916 Weighting Jolnt costs allocated 29.134 $ 110,606 S 139.800 Requirement 1d. Allocate the $139,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places, XXX%. Round your answers to the nearest whole dollar.) Super-Fine Baking Flour Bread Flour Total Final sales value of total production Deduct gross margin, using overall gross-margin percentage of sales Total production costs Deduct separable costs Joint costs allocated
NW Flour Company buys 1 input of standard flour and refines it using a special siting process to 3 cups of baking flour and 9 aups of bread flour. In May, NW bought 11,200 inputs of flour for $91,500. NW spent another S48,300 on the special siting process. The baking flour can be sold for $3.70 per cup and the bread flour for $5.00 per cup. NW puts the baking flour through a second process so it is super fine. This costs an additional S1 per cup of baking flour and the process yields - cup of super-fine baking flour for every one cup of baking flour used. The super-fine baking flour sells for $9.90 per oup. Reguired Super-Fine Baking Flour Bread Flour Total Final sales value of total production 166.320 $ 504,000 Deduct separable costs 33.00 S Net realizable value splitoff 132.720 $ 504,000 S 636,720 0.2084 0.7916 Weighting Jolnt costs allocated 29.134 $ 110,606 S 139.800 Requirement 1d. Allocate the $139,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places, XXX%. Round your answers to the nearest whole dollar.) Super-Fine Baking Flour Bread Flour Total Final sales value of total production Deduct gross margin, using overall gross-margin percentage of sales Total production costs Deduct separable costs Joint costs allocated
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:NW Flour Company buya 1 input of standard flour and refines it using a special sifting proceas to 3 cups of baking flour and 9 cups of bread flour. In May, NW bought 11,200 inputs of flour for $91,500. NW spent another $48,300 on the special
sifting process. The baking flour can be sold for $3.70 per cup and the bread flour for $5.00 per cup.
NW puts the baking flour through a second procesa so it is super fine. This costs an additional $1 per cup of baking flour and the process yields - cup of super-fine baking flour for every one cup of baking flour used. The super-fine baking flour
sells for $9.90 per cup.
Required
Super-Fine
Baking Flour
Bread Flour
Total
Final sales value of total production
166.320 $
504,000
33.600 $
Deduct separable costs
Net realizable value at splitoff
132,720 $
504,000 S
636,720
Weighting
0.2084
0.7916
Jolnt costs allocated
29,134 $
110,666 S
139,800
Requirement 1d. Allocate the $139,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places,
X.XX%. Round your answers to the nearest whole dollar.)
Super-Fine
Baking Flour
Bread Flour
Total
Final sales value of total production
Deduct gross margin, using overall
gross-margin percentage of sales
Total production costs
Deduct separable costs
Joint costs allocated
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