Sales value at splitoff: Special B/ Special S/ beef ramen shrimp ramen Total Sales value of total production at splitoff Weighting Joint costs allocated a. Allocate the joint costs using the sales value at splitoff method. Begin by entering the amounts in the table and allocate the joint costs. (Enter the weighting to two decimal places.) Sales value at splitoff: Special B/ Special S/ beef ramen shrimp ramen Total Sales value of total production at splitoff $ $0 Weighting Joint costs allocated Compute the gross margin percentages using the sales value at splitoff method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts and percentages.) Special B Special S Total Revenues Joint costs Separable costs Gross margin Gross margin percentage % % % b. Allocate the joint costs using the physical-measure method. Enter the amounts in the table and allocate the joint costs.(Enter the weighting to two decimal places.) Physical-measure method: Special B/ Special S/ beef ramen shrimp ramen Total Physical measure of total production (tons) Weighting Joint costs allocated Compute the gross margin percentages using thephysical-measures method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts andpercentages.) Special B Special S Total Revenues $ $ Joint costs Separable costs Gross margin $ Gross margin percentage 72 c. Allocate the joint costs using the net realizable value method. Enter the amounts in the table and allocate the joint costs. (Enter the weighting to two decimal places.) Net realizable value (NRV) method: Special B Special S Total Net realizable value of total production at splitoff Weighting Joint costs allocated Compute the gross margin percentages using the NRV method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts andpercentages.) Special B Special S Total Revenues Joint costs Separable costs Gross margin Gross margin percentage % % %

Special B

Special S

Joint costs

Separable costs

Gross margin

Gross margin percentage

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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Question

Sales value at splitoff:	Special B/	Special S/
	beef ramen	shrimp ramen	Total
Sales value of total production at splitoff
Weighting
Joint costs allocated

a. Allocate the joint costs using the sales value at splitoff method. Begin by entering the amounts in the table and allocate the joint costs. (Enter the weighting to two decimal places.)

Sales value at splitoff:	Special B/	Special S/
	beef ramen	shrimp ramen	Total
Sales value of total production at splitoff		$	$0
Weighting
Joint costs allocated

Compute the gross margin percentages using the sales value at splitoff method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts and percentages.)

b. Allocate the joint costs using the physical-measure method. Enter the amounts in the table and allocate the joint costs.(Enter the weighting to two decimal places.)

Physical-measure method:	Special B/	Special S/
	beef ramen	shrimp ramen	Total
Physical measure of total production (tons)
Weighting
Joint costs allocated

Compute the gross margin percentages using thephysical-measures method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts andpercentages.)

c. Allocate the joint costs using the net realizable value method. Enter the amounts in the table and allocate the joint costs. (Enter the weighting to two decimal places.)

Net realizable value (NRV) method:
	Special B	Special S	Total
Net realizable value of total production at splitoff
Weighting
Joint costs allocated

Compute the gross margin percentages using the NRV method to allocate the joint costs. (Round the percentages to the nearest whole percent. Use parentheses or a minus sign when entering applicable negative gross margin amounts andpercentages.)

### Data Table

This table lays out the cost and production data related to the processing of Beef Ramen and Shrimp Ramen, leading to the creation of Special B and Special S.

#### Costs and Production Overview:

- **Joint Costs**: Total joint costs amount to $260,000. These include the costs of noodles, spices, and other inputs, along with processing up to the split-off point.

- **Separable Costs**:
- For Beef Ramen, processing 6,000 tons into 12,000 tons of Special B incurs separable costs of $48,000.
- For Shrimp Ramen, processing 9,000 tons into 17,000 tons of Special S incurs separable costs of $85,000.

#### Inventory and Production Data:

- **Beginning Inventory**: All items start with 0 tons in inventory.

- **Production**:
- Beef Ramen: 6,000 tons
- Shrimp Ramen: 9,000 tons
- Special B: 12,000 tons
- Special S: 17,000 tons

- **Transfer for Further Processing**:
- Beef Ramen: 6,000 tons
- Shrimp Ramen: 9,000 tons

- **Sales**:
- Special B: 12,000 tons
- Special S: 17,000 tons

#### Selling Price per Ton:
- Beef Ramen: $25
- Shrimp Ramen: $45
- Special B: $51
- Special S: $54

This table helps analyze the costs and production flow of transforming raw ramen into specialized products, with an emphasis on cost management and efficiency.

**Data Table**

This table outlines the joint costs and sales figures associated with the production of Beef Ramen and Shrimp Ramen. The financial data is organized into rows and columns for clarity and analysis.

- **Row 1:** Serves as the header for the table.
- **Row 2:** Indicates the joint costs, which include expenses related to noodles, spices, and other inputs necessary up to the splitoff point. The total joint cost is $260,000.
- **Column B & C Labels:** "Beef Ramen" and "Shrimp Ramen" represent the two product lines involved.

**Beef Ramen:**
- **Row 4:** Beginning inventory is 0 tons.
- **Row 5:** Production is 6,000 tons.
- **Row 6:** Sales amount to 6,000 tons.
- **Row 7:** Selling price is $25 per ton.

**Shrimp Ramen:**
- **Row 4:** Beginning inventory is 0 tons.
- **Row 5:** Production is 9,000 tons.
- **Row 6:** Sales amount to 9,000 tons.
- **Row 7:** Selling price is $45 per ton.

This table is used to analyze the production and sales operations, illustrating both the cost structure and revenue potential of each product type.

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