Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8. Problem 17-27 Part 1 Required: 1. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to CBL Problem 17-27 Part 2 2. Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculat of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) = Joint cost allocated to MSB

Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8. Problem 17-27 Part 1 Required: 1. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to CBL Problem 17-27 Part 2 2. Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculat of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) = Joint cost allocated to MSB

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

Joint Cost Allocation—Physical Units Method Medieval Blacksmith Co. produces two types of decorative swords, a broadsword and a longsword. The swords are made through a joint production process that ultimately produces 42 broadswords and 28 longswords and costs a total of $4,200 per batch. After the split-off point, each type of sword goes through an additional crafting process before it is sold. The additional production process of the broadsword costs $42 per sword, after which it is sold for $174 per sword. The additional production process of the longsword costs $28 per sword, after which it is sold for $148 per sword. Determine the amount of joint production costs allocated to each type of sword using the physical units method. Joint Product Allocation Broadsword $fill in the blank 1 Longsword fill in the blank 2 Totals $fill in the blank 3
Joint Cost Allocation-Physical Units Method Medieval Blacksmith Co. produces two types of decorative swords, a broadsword and a longsword. The swords are made through a joint production process that ultimately produces 30 broadswords and 20 longswords and costs a total of $4,000 per batch. After the split-off point, each type of sword goes through an additional crafting process before it is sold. The additional production process of the broadsword costs $30 per sword, after which it is sold for $180 per sword. The additional production process of the longsword costs $25 per sword, after which it is sold for $150 per sword. Determine the amount of joint production costs allocated to each type of sword using the physical units method. Joint Product Broadsword Longsword Totals Allocation $
Allocating Joint Costs Using the Net Realizable Value Method Please answer in same format as question.
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.70 0.60 Annual Production 20,000 units 84,000 units Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims $ 28,560 80 $ 159,600 6,000 Posts 130 0 Total 210 6,000 Direct labor-hours $ 680,000 14,000 50,400 64,400 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
Po.26.
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 17,000 $ 18,800 $ 230,000 N 11,000 16,400 210,000 T 12,000 3,800 39,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method?
Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $594,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 264,000 $ 200,640 $ 29,040 $ 237,600 Chem-2 176,000 264,000 28,160 288,640 Chem-3 200,000 156,000 24,000 187,500 Chem-4 160,000 272,000 28,800 300,000 800,000 $ 892,640 $ 110,000 $ 1,013,740 Required: Barrett Chemicals uses the physical quantities method to allocate joint costs. What joint costs would be allocated to each product in May?
North-South Pole Company produces two products, a jacket suitable for adventure-seeking people (Spirit) and a jacket for less-adventurous people (Companion). Production and Sales per year 20,000 units (Spirit) & 5,000 units (Companion) 3.5 hours per unit (both) $32.00 per hour $285,000 $180 per unit (both) Direct labour Direct labour cost Estimated annual manufacturing overhead Direct materials Breakdown of overhead rates Activity Cost Pools Estimated Expected Use of Cost Drivers per Activity Activity Based Overhead Rates Overhead Machine set-up Sewing Inspection $ 40,000 $135,000 37,500 machine hours (MH) $? per MH $ 25,000 $? per set-up 200 1000 | $? per inspection The breakdown between the two products for assigning overheads are as follows: Product No. of Set-ups Sewing 23,500 14,000 Inspections Spirit Companion 105 500 95 500 Required: From the following information, calculate the unit costs for "Spirit" and "Companion" using both the traditional method of costing (i.e.…
Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $242,000. The total cost of the Cafeteria Department is $878,000. The number of employees and the square footage in each department are as follows: Employees Square Feet 10 18 2,400 ETT 40 2,400 50 Security Department Cafeteria Department Laser Department Forming Department Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments. Security Department cost allocation 540 3,200 Cafeteria…
Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: Product Chem-1 Chem-2 Chem-3 Chem-4 Units Produced 288,000 176,000 192,000 144,000 800,000 Chem-1 Chem-2 Chem-3 If Processed Further Required: Which, if any, of the four products would you recommend Barrett Chemicals sell at split-off (and not process further)? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Chem-4 Sales Value at Additional Split-Off Costs $ 220,000 264,000 149,600 246,400 $ 880,000 $ 32,700 29,400 24,900 26,300 $ 113,300 Sales Values $ 260,000 290,000 180,000 270,000 $ 1,000,000 h
Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 59,400 units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS-43 is as follows: Direct materials $44.35 Direct labor 9.45 Variable overhead 2.50 Fixed overhead 3.65 Total $59.95 Of the total fixed overhead assigned to ABS-43, $11,939 is direct fixed overhead (the annual lease cost of machinery used to manufacture Part ABS-43), and the remainder is common fixed overhead. An outside supplier has offered to sell the part to Wehner for $56.14. There is no alternative use for the facilities currently used to produce the part. No significant non-unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-43?Wehner should the part. This will produce total cost savings of $ 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your…