Sales-Value-at-Split-off MethodAlomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:Direct materialsDirect laborOverhead$64,50038,00026,000At the split-off point, a batch yields 1,800 barlon, 3,200 selene, 3,100 plicene, and 3,300 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $24 per unit, plicene sells for $30 per unit,and corsol sells for $35 per unit.Required:Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.Allocated Joint CostBarlonSelenePliceneCorsolTotal(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)

Step 1: Solve for the total sales value. Sales Value = Units X Selling price per unit Barlon =…

Answered: Sales-Value-at-Split-off Method Alomar…

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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Save & Exit Submit Forest Products, Incorporated, manufactures three products (FP-10, FP-20, and FP-40) from a single, joint input. None of the products can be sold without further processing. In November, joint product costs were $242,000. Additional information follows: Product FP-10 FP-20 FP-40 Units Produced 126,000 189,000 105,000 Sales Values $ 183,000 313,000 86,000 Processing Costs (After Split-off) $ 30,000 110,000 26,000 The sale of FP-40 has been banned by a recent law. If FP-40 is produced, disposal in an approved manner costs $120,000 for every 105,000 units produced. Required: a. Assuming that Forest Products continues to use the physical quantities method of allocation and to manufacture and sell FP-10 and FP-20. What joint costs would be allocated to FP-10 and FP-20? b. There is a possibility that a market for FP-10 and FP-20 at split-off will develop. In other words, it will be possible to sell the two products rather than process them further. At what sales value (at…
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Process Activity Analysis The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: properly filled cans are boxed into cardboard "fridge packs." The activity costs associated with these activities for the period are as follows: Mixing $386,000 Filling 341,500 Packaging 97,500 Total $825,000 The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 7,800,000 cans during the…
Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 59,300 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 $47.15 Direct labor 9.65 Variable overhead 2.30 Fixed overhead 4.65 Total $63.75 Of the total fixed overhead assigned to ABS-43, $14,766 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 $58.92. 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 buy the part. This will produce total cost savings of $fill in the blank 2. 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside…
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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…
Forest Products, Incorporated manufactures three products (FP-10, FP-20, and FP-40) from a single, joint input. None of the products can be sold without further processing. In November, joint product costs were $241,300. Additional information follows: Product FP-10 FP-20 FP-40 Units Produced 105,000 157,500 87,500 Product FP-10 FP-20 FP-40 Sales Values $ 177,750 311,250 85,300 Required: Forest Products uses the physical quantities (units produced) method to allocate joint costs. What joint costs would be allocated to each of the three products in November? Joint Costs Allocated Processing Costs (After Split-Off) $ 29,300 109,300 25,300
am. 113.

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