Exercise 8-2. JOINT COST ALLOCATIONThe AB Company produces three joint products, A, N and T. During February, the following informationwas recorded:TotalProductAProduct ProductINJoint materialsP 5,000Joint processing costSeparable processing costsOutput in unitsKilograms per unitSales price per unit @ split offIndex pointsREQUIRED: Compute for the gross profit for each product by allocating the joint cost using: [a] marketvalue method, [b]quantitative unit method; [c] average unit cost method; [d] weighted averagemethod25,000P 5,00015,00010,000P8,000P2,0002,0005,0003,0003P5.00 P 3.00P 4.00243

Gross profit is the initial profit level of any business attained directly from the sale of goods or…

Answered: P 5,000 25,000 15,000 P 5,000 5,000…

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P 5,000 25,000 15,000 P 5,000 5,000 P8,000 P2,000 3,000 3 2,000 10,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...

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Exercise 8-3. JOINT COST ALLOCATION - HYPOTHETICAL MARKET VALUE METHOD JC Company manufactures three different products from a single raw material. A summary of production costs shows: Product Product Product Total B A Y Output in kgs 80,000 200,000 160,000 440,000 Selling price/ kg P0.75 P1.00 P1.50 Costs: Product Product Product Total B A Y Cost Materials -0- -0- -0- P90,000 Direct Labor…
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Joint products A, B and C are produced by JNT Corp. For the month just ended, these data are available: Using the market value method, the joint cost apportioned to each product will be: A. A – P22,652; B – P13,843; C – P13,335 B. A – P19,995; B – P19,014; C – P10,821 C. A – P22,440; B – P16,005; C – P11,385 D. A – P24,357; B – P14,885; C – P10,588
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Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W
Bulldog Canyon Manufacturing produces three products from a joint process. The following information is available for the period just ended: Units produced Joint cost allocation. Sales value at split-off Multiple Choice O $53,280. $48,000. BDC-4 BDC-5 10,800 25,200 $33,120 $57,600. ? Assume that Bulldog Canyon allocates joint costs using the relative-sales-value method. What is the amount of joint cost allocation to BDC-4? $17,280. $187,200 ? BDC-6 54,000 Not enough information is provided to determine how to allocate the joint cost. Total 90,000 $144,000 ? 2 $468,000
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Please provide this question solution general accounting
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 units
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Cost of quality report A. Using the information in Exercise 15, identify the cost of quality classification for each activity. B. Prepare a cost of quality report. Assume sales for the period were 4,000,000. Round percentages to one decimal place. C. Interpret the cost of quality report.