Problem No. 2- Joint and By-Products CBA Company produced two joint products A and B and two by-products Y and Z from the same raw materials with joint costs P250,000. The entity uses the physical unit costs method in allocating joint costs to main products and reversal cost method to by-products. Additional information is given below: Products A B Y 2/4 Units Produced 20,000 30,000 5,000 5,00 Units Sold 19,000 28,000 5,000 5,000 Final unit selling price P25 P20 P2 P1.50 Additional processing P150,000 P210,000 P5,000 P4,000 costs Operating Expenses P25,000 P30,000 P500 P400 Desired Profit P2,000 P1,500 Requirement: (1) Prepare a schedule showing the distribution of joint costs, and (2) prepare a statement of comprehensive income showing the sales, cost of goods sold, gross profit, operating expenses and net profit by product.

Problem No. 2- Joint and By-Products CBA Company produced two joint products A and B and two by-products Y and Z from the same raw materials with joint costs P250,000. The entity uses the physical unit costs method in allocating joint costs to main products and reversal cost method to by-products. Additional information is given below: Products A B Y 2/4 Units Produced 20,000 30,000 5,000 5,00 Units Sold 19,000 28,000 5,000 5,000 Final unit selling price P25 P20 P2 P1.50 Additional processing P150,000 P210,000 P5,000 P4,000 costs Operating Expenses P25,000 P30,000 P500 P400 Desired Profit P2,000 P1,500 Requirement: (1) Prepare a schedule showing the distribution of joint costs, and (2) prepare a statement of comprehensive income showing the sales, cost of goods sold, gross profit, operating expenses and net profit by product.

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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Exercise 1-11 (Algo) Cost Behavior; Contribution Format Income Statement (LO1-4, LO1-6] Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 51,000 to 91,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 81,000 units during the year at a selling price of $9.09 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 71,000 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost Fixed cost Total cost per unit S S $1,000…
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Heidelberg Fabrication manufactures two products, G -09 and G-35: \table[[, G- 69, G-35], [Units produced, 18,700, 3, 740], [Direct materials cost per unit, $7,$19 C Heidelberg Fabrication manufactures two products, G-09 and G-35: G-09 6-35 Units produced 18,700 3,740 Direct materials cost per unit Machine-hours per unit $ 7 $ 19 Production runs per quarter 4 144 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Materials handling Total $ 100,980 50,490 40,392 $ 191,862 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Unit Cost G-09 G-35…
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