Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $180,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 252,000 Product 1 2 3 72,000 36,000 $360,000 Assume that the total sales value at the split-off point for product 1 is $108,000 instead of $252,000 and the sales value of product 3 is $3,600 instead of $36,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses an asset recognition method (the NRV method) for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 350 1,050 2,100 3,500 Allocated Joint Cost

Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $180,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 252,000 Product 1 2 3 72,000 36,000 $360,000 Assume that the total sales value at the split-off point for product 1 is $108,000 instead of $252,000 and the sales value of product 3 is $3,600 instead of $36,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses an asset recognition method (the NRV method) for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 350 1,050 2,100 3,500 Allocated Joint Cost

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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