Q2. Vreeland Incorporation manufactures three products X, Y and Z, from a joint process. The joint cost total $60,000. Additional information is as follows: Products Additional Cost and Market Value if process Further Additional Cost Units Market Value Produced at split off 6,000 $6.66 4,000 8.75 2,000 12.50 5,000 Required: Allocation of the production cost and Total Cost using Market Value Method. X Y Z $ 9,000 7,000 Ultimate Market Value $ 55,000 45,000 30,000
Q2. Vreeland Incorporation manufactures three products X, Y and Z, from a joint process. The joint cost total $60,000. Additional information is as follows: Products Additional Cost and Market Value if process Further Additional Cost Units Market Value Produced at split off 6,000 $6.66 4,000 8.75 2,000 12.50 5,000 Required: Allocation of the production cost and Total Cost using Market Value Method. X Y Z $ 9,000 7,000 Ultimate Market Value $ 55,000 45,000 30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:MARKET VALUE METHOD
A - ALLOCATE THE JOINT COST
USING THE NET REALIZABLE VALUE
METHOD
B - ALLOCATE THE JOINT COST
USING SALES VALUE SPLIT OFF
METHOD
Transcribed Image Text:Q2. Vreeland Incorporation manufactures three products X, Y and Z, from a joint process. The joint cost total
$60,000. Additional information is as follows:
Products
Units
Produced
6,000
4,000
2,000
12.50
5,000
Required: Allocation of the production cost and Total Cost using Market Value Method.
XXN
Y
Z
Additional Cost and Market Value
process Further
if
Additional Cost
Market Value
at split off
$6.66
8.75
$ 9,000
7,000
Ultimate Market Value
$ 55,000
45,000
30,000
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