Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta-1, Beta-2, and Beta-3. Davenport sells Beta-1 at the split-off point, with no further processing; it processes Beta-2 and Beta-3 furtherbefore they can be sold. Beta-2 is fused in Department B. and Beta-3 is solidified in Department C. Following is a summary of costsand other related data for the year ended November 30.(1) DIstilling (2) Fusing (3) solidifyingDepartmentCost of Alpha-11Direct laborManufacturing overhead$717,000172, 000150, 000$339, 000159, 000$495, 000406, 000ProductsGallons soldGallons on hand at year-endSalesBeta-1Beta-2362, 000Beta-3543, 000181, 000$724, 000 $2, 172, 000 $3, 258, 000181, 000122, 000Davenport had no beginning inventories on hand at December 1 and no Alpha-11 on hand at the end of the year on November 30. Allgallons on hand on November 30 were complete as to processing. Davenport uses the net realizable value method to allocate jointcosts.Required:Compute the following:a. The net realizable value of Beta-1 for the year ended November 30.b. The joint costs for the year ended November 30 to be allocated.c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations. Round your final answer to thenearest whole dollar amount.)d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations. Round your final answer to the nearestwhole dollar amount.)a. Net realizable value of Beta-1b Joint costsCost of Beta-2 soldd. Ending inventory for Beta-1

Calculations: a) As Beta-1 is sold at the split-off point, its net realizable value will be equal to…

Required: Compute the following: a. The net realizable value of Beta-1 for the year ended November 30. b. The joint costs for the year ended November 30 to be allocated. c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

Required: Compute the following: a. The net realizable value of Beta-1 for the year ended November 30. b. The joint costs for the year ended November 30 to be allocated. c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

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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