Question Content Area McBride’s Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It also incorporates a processing time weight factor of 1 for the cream and 3 for the skimmed milk. The amount of this cost that will be allocated to cream using the weighted average method is a. $900 b. $1,000 c. $250 d. $100

Question Content Area McBride’s Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It also incorporates a processing time weight factor of 1 for the cream and 3 for the skimmed milk. The amount of this cost that will be allocated to cream using the weighted average method is a. $900 b. $1,000 c. $250 d. $100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ralston Dairy gathered this data about the two products that it produces: Products Current SalesValue Estimated AddedProcessing Costs Sales Value IfProcessing Further Frozen yogurt $8,000 $1,900 $11,100 Ice cream 12,100 6,900 18,000 Which of the products should be processed further? _____ because profits _____ $_____
Joint Cost Allocation—Net Realizable Value Method Lily’s Lemonade Stand makes three types of lemonade: pure, raspberry, and strawberry. The lemonade is produced through a joint mixing process that costs a total of $30 per batch. One batch produces 32 cups of pure lemonade, 21 cups of strawberry lemonade, and 21 cups of raspberry lemonade. After the split-off point, all three lemonades can be sold for $0.80 per cup, but strawberry and raspberry lemonade can be processed further by adding artificial coloring and flavoring and sold for $0.95 and $1.00 per cup, respectively. It is estimated that these additional processing costs are $0.75 and $1.80 per batch for strawberry and raspberry lemonade, respectively. Allocate the joint costs of production to each product using the net realizable value method. Joint Product Allocation Pure lemonade $ Strawberry lemonade Raspberry lemonade Totals $
D-10 Balcom Dairy gathered this data about the two products that it produces: (Refer to attached image) Which of the products should be processed further?
Question 7.4 The Dairy Company produces three products from a joint processes using whole milk: butter, cheese, and cream. The joint costs amount to $24,000 per batch of output. Each batch totals 50,000 liters: 25% butter, 25% cheese, 50% cream. All products are processed further without gain or loss in volume. Separable costs are butter, $0.50 per liter; cheese, $2.00 per liter; cream, $0.25 per liter. The selling prices per liter are respectively: $3.50, $6.00, $4.00. Required: How much joint cost per batch should be allocated to cream, assuming that joint costs are allocated on a physical measure basis? If joint costs are assigned on a net realizable value basis, how much joint cost should be allocated to cheese? An organic grocer has offered to buy all of the cheese produced at $5.50 per liter. Traditionally 90% of the cheese production is sold. How much better or worse off financially is the company from accepting this offer?
Answer questions 9 and 10
QUESTION 1 Refineries Ltd manufactures sugar, both brown sugar and white sugar. The basic ingredient for both of the sugar products is sugar cane, which costs N$48 per kg. A machine is used to extract the sugar from the sugar cane. The depreciation on the machine amounts to N$1 200 per day, while the machine operator is paid N$200 per day and other conversion costs amount to $10 per kg. The machine can process 10 kg of sugar cane in one day. 1kg of sugar cane is used to produce 10 packets and 8 packets of 1kg brown and white sugar respectively. The selling price per packet amounts to $8 for brown and $12 for white sugar.10 kgs of sugarcane is required to produce 100 packets of brown sugar and 80 packets of white sugar. During the refinery process all visible molasses is removed from the raw sugarcane, after which it is sold to a cattle feeds’ manufacturer, at a price of $5 per kg. 10kgs of raw sugarcane usually have only 0,5kgs of molasses. REQUIRED; A.) Calculate the cost of both…
Transfer pricingMogi Corp. manufactures one primary product, which is processed through two divisions (P and R). Costs for each division are: P R Variable cost per gallon $3 $15 Fixed cost per gallon* 2 12 * Based on production of 75,000 and 120,000 gallons for P and R respectively. P Division produces 75,000 gallons per month. R Division uses 120,000 gallons per month; of that, 75,000 gallons are purchased internally and 45,000 are purchased externally at $10 per gallon. After processing through R Division, a gallon of final product can be sold for $55.a. What would be P’s transfer price to R Division if the price is set at 180 percent of variable cost? $Answer b. What would be P’s transfer price to R Division if the price is set at 130 percent of full cost? $Answer c. What would be P’s transfer price to R Division if the price is set at market value? $Answer d. What is Mogi Corp.’s operating profit if all 120,000 gallon of final product can be sold for $55 per…
Transfer pricingMogi Corp. manufactures one primary product, which is processed through two divisions (P and R). Costs for each division are: P R Variable cost per gallon $3 $15 Fixed cost per gallon* 2 12 * Based on production of 25,000 and 40,000 gallons for P and R respectively. P Division produces 25,000 gallons per month. R Division uses 40,000 gallons per month; of that, 25,000 gallons are purchased internally and 15,000 are purchased externally at $10 per gallon. After processing through R Division, a gallon of final product can be sold for $55.a. What would be P’s transfer price to R Division if the price is set at 180 percent of variable cost? Answer: 5.4 b. What would be P’s transfer price to R Division if the price is set at 130 percent of full cost? Answer: 6.5 c. What would be P’s transfer price to R Division if the price is set at market value? Answer: 10 d. What is Mogi Corp.’s operating profit if all 40,000 gallon of final product can be sold for $55…
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $13,000. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,400 $0.50 $2.00 Triol 4,000 1.00 5.00 Pioze 2,600 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. Total Revenue Total Costs Total Gross Profit 42,400 V 22,600 19,800 V 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Product L-Ten Joint Cost Allocation
Please do not give solution in image format thanku
1
Pls answer ASAP I really need help