Oriole produces four kinds of ice cream from a single process. The total joint costs of $77,900 resulted in 3,000 gallons of vanilla,2,700 gallons of strawberry, 2,100 gallons of chocolate, and 1,000 gallons of Neapolitan ice cream. Oriole sells the vanilla ice cream for$3.00/gallon and sells each of the other three flavors for $3.50/gallon. How much of the joint cost will be allocated to each product ifthe sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g.5,125.)Allocatedjointcosts$Vanilla$Strawberry$ChocolateSANeapolitan

To allocate joint costs using the sales value at split-off method, we first need to calculate the…

Answered: Oriole produces four kinds of ice cream…

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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Illion Soy Products (ASP) buys soybeans and processes them into other soy products. Each ton of soybeans that ASP purchases for $250 can be converted for an additional $180 into 700 lbs of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.08 and soy oil can be sold in bulk for $4 per gallon. ASP can process the 700 pounds of soy meal into 800 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.08 per pound. The 80 gallons of soy oil can be packaged at a cost of $200 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.45. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit TI-12 $ 80 Required A Required B 23 29 8 $ 20 0.1
Soy Products (DSP) buys soybeans and processes them into other soy products. Each ton of soybeans that DSP purchases for $260 can be converted for an additional $170 into 575lbs of soy meal and 140 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.48 and soy oil can be sold in bulk for $4.75 per gallon. DSP can process the 575 pounds of soy meal into 725 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.48 per pound. The 140gallons of soy oil can be packaged at a cost of $200 and made into 560quarts of Soyola. Each quart of Soyola can be sold for $1.45.
Wilkin Fruit Drink Company planned to make 400,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 800,000 cups (400,000 containers x 2 cups) of frozen concentrate. The standard price of one cup of apple concentrate is $0.25. Actually, Wilkin produced 404,000 containers of apple juice and purchased and used 820,000 cups of concentrate at $0.26 per cup. Required a. Complete the spreadsheet template to calculate price and usage variances. Spreadsheet Tips 2. The cells that label the variances as F or U (favorable (F) or unfavorable (U)) are based on a function called IF. The IF function is needed because the variance can be either favorable or unfavorable. The formula must determine whether actual expenditures exceed budgeted expenditures to determine whether the variance is unfavorable or favorable. As an example, the formula in cell D22 is =IF(B21>E21,"U","F"). The formula evaluates the expression B21>E21.…
4,000 spindles of yarn are produced. The spindles of yarn can then be sold directly to stores or they can be used by Austin Wool Products to make afghans. Each spindle of yarn sells for $12; variable costs are $8 to make a spindle of yarn, and fixed costs to make 4,000 spindles of yarn total $8,000. The yarn can also be used to make afghans. Each afghan sells for $32 and requires one and a quarter (1.25) spindles of yarn. The additional costs incurred to make afghans from yarn include $9 per afghan in variable costs, and $20,000 in additional fixed costs. a. In order to maximize profits, should Austin sell the spindles of yarn or further process the yarn into afghans? How much operating income would Austin generate on a monthly basis by following your suggestion?
Subject - account Please help me. Thankyou.
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $360,000 for a standard production run that generates 170,000 pints of Smooth Skin and 300,000 pints of Silken Skin. Smooth Skin sells for $3.20 per pint, while Silken Skin sells for $5.20 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.80 per pint for Smooth Skin and $1.70 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off…
The Cool Watch company sells two products. The company's water-resistant model sells for $100, has a contribution margin of 35%, and generated sales of $100,000. The company's "basic timepiece" sells for $40, has a contribution margin of 40%, and generated sales of $80,000. Fixed expenses for the company as a whole were $50,000 and the product mix was constant. a) How many watches did the company sell? b) Compute the break-even point for the company in sales dollars. Round all calculations to two decimal places.

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