Sheridan Minerals processes materials extracted from mines. The most common raw material that it processes results in there onproductic Spock Uhura and Sulu Each of these products can be sold ais, or each can be processed further and sold for a higher priceThe company incurs joint costs of $179.900 to process one biatch of the raw material that produces the three joint products. Thefollowing cost and sales information is available for one hatch of each productSpockUhursSales Value atSplit-Off PointSpock1210.500300.300455.700UburkDetermine the incremental prut or lots that each of the threejint products (Enter neutive munts using either a nivenpreceding the number e 45 or parenthee (45)midaninAllocatedJolst14030059.90079,700STextbook and MediaCost to ProcessFurther$109.40064.400250,100Spockindicate whether each of the three point products should be sold in is, or processed furtherSales Value ofProcessed Product$300 400399.700800.000UhursSuluAttempt of d

To determine product to be sold at split off point or process further we should compare incremental…

Sheridan Minerals processes materials extracted from mines. The inost common raw material that it processes rends in the join products Spock Utora and Sulu Cach of these products can be sold as is, or each can be processed further and sold for a higher price The company incurs joint costs of $179.900 to process one batch of the rawi erial that produces the three joint products. The dow information product Soock Uhurs Sales Val Split Off Point 1210500 300.300 455.700 Ubura precling the number og -45 or purcha Allocated Jol Costs $40300 54.900 79,700 S Textbok and Media Spock Cost to Process $109400 64400 250,100 Sales Value of Processed Product $300-400 399.200 800.000 indicate whether each of the three joint products should be sild anis, or processed further Uhure Sulu Attempts 0 of 3 d

Sheridan Minerals processes materials extracted from mines. The inost common raw material that it processes rends in the join products Spock Utora and Sulu Cach of these products can be sold as is, or each can be processed further and sold for a higher price The company incurs joint costs of $179.900 to process one batch of the rawi erial that produces the three joint products. The dow information product Soock Uhurs Sales Val Split Off Point 1210500 300.300 455.700 Ubura precling the number og -45 or purcha Allocated Jol Costs $40300 54.900 79,700 S Textbok and Media Spock Cost to Process $109400 64400 250,100 Sales Value of Processed Product $300-400 399.200 800.000 indicate whether each of the three joint products should be sild anis, or processed further Uhure Sulu Attempts 0 of 3 d

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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Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Units Product Produced 54,600 39,000 W-10 W-20 W-30 W-40 Product 31, 200 31, 200 156,000 W-10 W-20 W-30 W-40 Sales Value at Split-Off $324,000 279,000 189,000 144,000 $936,000 Required: Assuming that total joint costs of $327,600 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.) Joint Costs Allocated If Processed Further S 114,300 $ 91,800 $ 73,800 $ 73,800 Additional Costs $ 35,000 27,900 18,900 11,700 $ 93,500 Sales Values $ 355,000 324,000 234,000 156,000 $1,069,000
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Spark limited has two divisions assembly and electrical the assembly division transfers partially completed components to the electrical division at a predetermined price tye assembly division standard variable production cost per unit is 550 this division has spare capacity and it could sell all its components to outside buyers at 680 per unit in a perfectly competitive market required determine transfr price using general rule What transfer price would you recommend if there was no outside market for the transfered component and the assembly division has sapre capacity explain how negotion between supplying and buying units may be used to set transfer prices how does this relate to the general transfer pricing rule
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF1 27,300 ? DF2 18,300 ? $ 563,250 $ 187,750 Joint Cost BP 15,300 ? $ 102,300 Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 60,900 $ 560,300 $ 853,300
Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $154,680. Additional information is as follows: If Processed Further Product UnitsProduced Sales Value at Split-Off Sales Value Additional Costs A 7,110 $ 46,660 $ 64,435 $ 4,740 B 8,150 70,905 91,280 12,225 C 4,075 48,900 61,125 16,300 19,335 $ 166,465 $ 216,840 $ 33,265 Assuming that joint product costs are allocated using the net realizable value method, what were the total costs assigned to Product B? Multiple Choice $78,110. $77,906. $77,110. $79,396.
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 25,000 36,000 77,000 Price (after addt’l processing) $ 30 $ 15 $ 40 Separable Processing cost $ 179,000 $ 72,000 $ 107,000 $ 358,000 Units Produced 16,000 25,000 36,000 77,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
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4. Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $76,500, and the result is 5,900 gallons of anderine and 7,900 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $9.00 per gallon and the dofinol for $6.00 per gallon. Alternatively, the anderine can be processed further at a cost of $8.10 per gallon (of anderine) into cermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $60. Required: 1. Which alternative is more cost effective and by how much?NOTE: Do NOT round interim calculations and, if required, round your answer to the nearest dollar. by $fill in the blank 2 2. What if the production of anderine into cermine required additional purchasing and quality…
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 11,000 17,000 24,000 52,000 Price (after addt’l processing) $ 10 $ 25 $ 30 Separable Processing cost $ 282,000 $ 114,000 $ 169,000 $ 565,000 Units Produced 17,600 31,000 39,400 88,000 Total Joint Cost $ 4,800,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest…
Division A of SLG Company produces a part it sells to other companies. Sales and cost data for the part are as follows: Capacity in units 60,000 units Selling price per unit O $27 per unit O $39 per unit O $36 per unit O $41 per unit Variable cost per unit O None of the above. Fixed cost per unit at capacity Division B, another division of SLG Company, would like to buy this part from Division A. Division B is currently purchasing the part from an outside source at $38 per unit. If Division A sells to Division B, then $1 in Division A's variable costs can be avoided. Assume Division A has enough idle capacity to handle all of Division B's needs without any increase in fixed costs and without interfering with outside sales. According to the transfer pricing guidelines, what is the lowest acceptable transfer price from the perspective of Division A? $40 per unit $28 per unit $9 per unit