Physical and sales value allocations FINS produces three products from its fish farm: fish, fish oil, and fish meal. During July, FINS produced the following average quantities of each product from each pound (16 ounces) of fish processed: Obtained from Each Product Pound of Fish Fish 8 ounces Fish oil 4 ounces Fish meal 2 ounces Total 14 ounces Of each pound of fish processed, two ounces are waste (assume 12.5% for calculations). In July, FINS processed 37.5 tons of fish (1 ton equals 2,000 pounds). Joint cost amounted to $342,720. On average, each pound of product has the following selling prices: fish, $4.50; fish oil, $6.50; a fish meal, $2. a. Allocate the joint cost using weight as the basis. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Fish 24 Fish Oil Fish Meal Total

Physical and sales value allocations FINS produces three products from its fish farm: fish, fish oil, and fish meal. During July, FINS produced the following average quantities of each product from each pound (16 ounces) of fish processed: Obtained from Each Product Pound of Fish Fish 8 ounces Fish oil 4 ounces Fish meal 2 ounces Total 14 ounces Of each pound of fish processed, two ounces are waste (assume 12.5% for calculations). In July, FINS processed 37.5 tons of fish (1 ton equals 2,000 pounds). Joint cost amounted to $342,720. On average, each pound of product has the following selling prices: fish, $4.50; fish oil, $6.50; a fish meal, $2. a. Allocate the joint cost using weight as the basis. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Fish 24 Fish Oil Fish Meal Total

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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FINS produces three products from its fish farm: fish, fish oil, and fish meal. During July, FINS produced the following average quantities of each product from each pound (16 ounces) of fish processed: Obtained from Each Product Pound of Fish Fish 8 ounces Fish oil 4 ounces Fish meal 2 ounces Total 14 ounces Of each pound of fish processed, two ounces are waste (assume 12.5% for calculations). In July, FINS processed 37.5 tons of fish (1 ton equals 2,000 pounds). Joint cost amounted to $499,800. On average, each pound of product has the following selling prices: fish, $4.50; fish oil, $6.50; and fish meal, $2. a. Allocate the joint cost using weight as the basis. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Fish 2$ Fish Oil Fish Meal Total 2$ b. Allocate the joint cost using sales value as the basis. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Fish 24 Fish Oil Fish…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,400) Wages and salaries ($2,400 + $0.40g) Shipping ($0.55q) Utilities ($1,240) Quilcene Oysteria Flexible Budget For the Month Ended August 31 Other ($470 + $0.01g) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,400 5,320 4,015 1,240 543 17,073 $ 13,222 7,300 $ 27,000 2,725 3,260 5,730 3,745 1,050 1,163 17,673 $ 9,327
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 280 trees Production: paper 160,000 sheets pencil casings 160,000 Sales: paper 147,000 at $0.10 per page pencil casings 158,500 at $0.13 per casing The cost of purchasing 280 trees and processing them up to the split-off point to yield 160,000 sheets of paper and 160,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper?
Show in excel format - 9. The sales for Re - Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re - Works management expects the following sales: A table shows Re - Works Inc's sales for January ($120,000), February ($130,000) and March ($140,000). Based on past collection patterns, management expects the following: A table shows Re - Works Inc's collection patterns in the month of February showing month of sale (10%), month after sale (50%), and the remainder - second month after sale (40%). Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re - Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and…
Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product: Product Material X Material Y Material Z A 3 2 2 1 2 C 3 2 2 The company has a policy of maintaining an inventory of finished goods on all three products equal to 25% of the next month's budgeted sales. Unit costs of materials X, Y, and Z are respectively $4, $3, and $5. Denton Company has a policy of maintaining its raw material inventories at 50% of the next month's production needs. Listed below is the sales budget for the first quarter of the current year: Month Product A Product B Product C Jan. 10,000 9,000 11,000 12,000 Feb. 12,000 8,000 Mar. 11,000 10,000 10,000 Selling prices for products A, B, and C are $120, $140, and $150. Monthly sales for Denton are 25% on cash and the rest on account. Of those sold on account, Denton gives a 5% discount if the account is…
Using Process Costs For Decision Making The costs of energy consumed in producing good units in the Baking Department of Victor Company were $26,160 and $26,265 for June and July, respectively. The number of equivalent units produced in June and July was 54,500 pounds and 51,500 pounds, respectively. Evaluate the change in the cost of energy between the two months. Round all answers to the nearest cent. Energy cost per pound, June $ Energy cost per pound, July $ The cost of energy has appeared to by $ per pound between June and July.
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The Happy Wimp Co. is in the business of processing corn into oil, sugar, meal, and chaff. Each month the Happy Wimp Co. processes 20,000 pounds. The yields, additional processing costs, and selling prices are: Sales Value at Product Yield Split-off Point Oil 200 lbs. $1.25 Sugar 200 lbs. .80 Meal 500 lbs..40 Chaff 100 lbs..10 Added Costs Price per lb. .50 per lb. $2.00 .30 per lb. 1.30 .60 .10 .20 per lb. 0 Joint processing costs per 1,000 pounds are: raw materials $100, labor $80, and depreciation $4,000/20 = $200; Total $380. Required: a.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a main product. b.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a by-product.
The Green Company processes unprocessed goat milk up to the split- off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: | Direct materials processed: 100,500 gallons (after shrinkage) 44,500 gallons Production: Condensed goat milk Skim goat milk 56,000 gallons $4.25 per gallon $3.50 per gallon Sales: Condensed goat milk Skim goat milk The costs of purchasing the of unprocessed goat milk and processing it up to the split - off point to yield a total of 100,500 gallons of saleable product was $186.480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 44,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon. Skim goat milk can be processed further to yield 54,700 gallons of skim goat milk ice cream. for an additional processing…
Shipping costs for fish that is ordered by the restaurant are a mixed cost with variable and fixed cost components. Records indicate the Fish Company shipped 7,200 tons of halibut for $6,000 in May and 8,200 tons for $6,800 in June. What would be the expected shipping cost for shipping 8,000? $6,440 $9,750 $6,640 $6,200
Budget Performance Report Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Cost Category Standard Costper 100 Two-LiterBottles Direct labor $1.12 Direct materials 5.12 Factory overhead 0.36 Total $6.6 At the beginning of July, GBC management planned to produce 450,000 bottles. The actual number of bottles produced for July was 486,000 bottles. The actual costs for July of the current year were as follows: Cost Category Actual Cost for theMonth Ended July 31 Direct labor $5,334 Direct materials 24,286 Factory overhead 1,767 Total $31,387 Enter all amounts as positive numbers. a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production. Genie in a Bottle…
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