Tango Company produces joint products M, N, and T from a joint process. The following table shows information concerning a batch produced in April at a joint cost of $170,000. How much of the joint cost should be allocated to Product M using the net realizable value method? After Split-Off After Split-Off Produced Total Separable Total Final Sales Units Product and Sold Costs Value M 15,000 $22,000 $210,000 N 9,000 10,000 190,000 T 10,000 3,000 35,000

Tango Company produces joint products M, N, and T from a joint process. The following table shows information concerning a batch produced in April at a joint cost of $170,000. How much of the joint cost should be allocated to Product M using the net realizable value method? After Split-Off After Split-Off Produced Total Separable Total Final Sales Units Product and Sold Costs Value M 15,000 $22,000 $210,000 N 9,000 10,000 190,000 T 10,000 3,000 35,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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QUIK Manufacturing Company Ltd produces two products from a joint process. Informationabout the two joint products is as follows:Information Product A Product BBudgeted production (in kg) 2 000 4 000Selling price per kg at split-off $ 10 $ 20Additional processing costs per kgafter split-off (all variable)$ 15 $ 30Selling price per kg after furtherprocessing$40 $50The cost of the joint process is $ 90 000.Required:a) Which of QUIK company’s joint products should be sold at split-off point? Please supportyour answer with the necessary calculations. b) Which of QUIK company’s joint products should be processed further? please answer the same with working allocations
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