Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch producedin April at a joint cost of $175,000:After Split-OffProduct Units Produced and Sold Total Separable Costs Total Final Sales ValueM$ 18, 200NT14,6003,200Product15,5009,50010,500Required:How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do notround intermediate calculations. Enter your final answers in whole dollars.)MNT$ 215,000195,00036,000AllocatedJoint Cost

Joint Cost :— It is the cost that is incurred in the manufacturing of two or more joint products.…

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $175,000: After Split-Off Product Units Produced and Sold Total Separable Costs Total Final Sales Value M N T Product 15,500 9,500 10,500 M N T Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) $ 18, 200 14, 600 3, 200 Allocated Joint Cost $ 215,000 195,000 36,000

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $175,000: After Split-Off Product Units Produced and Sold Total Separable Costs Total Final Sales Value M N T Product 15,500 9,500 10,500 M N T Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) $ 18, 200 14, 600 3, 200 Allocated Joint Cost $ 215,000 195,000 36,000

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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Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs 12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if it cost 2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?
Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
Computing joint costssales value at split-off and net realizable value methods D.L. Manufacturing Inc.s joint cost of producing 1,000 units of Product A, 500 units of Product B, and 500 units of Product C is 20,000. The unit sales values of the three products at the split-off point are Product A20, Product B200, and Product C160. Ending inventories include 100 units of Product A, 200 units of Product B, and 300 units of Product C. a. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales value at split off. b. Assume that Product C can be sold for 200 a unit if it is processed after split-off at a cost of 25 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.
New
Denger
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $135,000: Product Units Produced and Sold M ZE N T 11,500 5,500 6,500 Product M N T After Split-Off Allocated Joint Cost Total Separable Costs $ 10,000 9,800 8,200 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Total Final Sales Value $175,000 155,000 28,000
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $165,000: Product M N Product M Units Produced and Sold 14,500 N T 8,500 9,500 After Split-Off Allocated Joint Cost Total Separable Costs $ 13,900 13,400 6,700 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Total Final Sales Value $ 205,000 185,000 34,000
Vishnu
ABC Company produces joint products X and Y, each of which incurs separable production costs after the split-off point. Information concerning a batch produced at a joint cost of $160,000 before split-off follows: Product X Y Total Separable costs $ 14,000 25,000 $ 39,000 Sales value $ 68,000 61,000 $ 129,000 What is the joint cost assigned to product line X if costs are assigned using relative net realizable value? a. $160,000 b. $64,000 C. $90,000 d. $96,000
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $175,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 15,500 $ 18,200 $ 215,000 N 9,500 14,600 195,000 T 10,500 3,200 36,000 How much of the joint cost should be allocated to each joint product using the net realizable value method?