The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the monthof June:Direct Materials processed: 27,500 gallons12,000 gallons15,500 gallons11,500 gallons15,000 gallons$2.00 per gallon$7.00 per gallon$15,000Production:Butter CreamCondensed MilkSales:Butter CreamCondensed MilkSales:Butter CreamCondensed MilkSeparable costs in Butter Creamtotal:Condensed Milk$33,700The costs of purchasing the of unprocessed milk and processing it up to the split - off point to yield a total of 27,500 gallons of saleable product was $70,550.The company uses constant gross - margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream?

Working Notes: 1. Working Amount Sales (12,000 gallons * $2 )+ (15,500 gallons * $7 )…

Answered: The Brital Company processes…

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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PREPARE FINANCIAL STATEMENT 1.MS. YAMA INVESTED 100,000 CASH TO THE BUSINESS 2.THE BUSINESS PURCHASED SUPPLIES WORTH 60, 000, GUITAR DOC USES THE EXPENSE METHOD 3. TOTAL SERVICE FEES BILLED TO CLIENTS, ON ACCOUNT, AMOUNTED TO 400,000 4. TOTAL COLLECTIONS ON ACCOUNTS RECEIVABLE AMOUNTED TO 270,000 5. MS. YAMA TOOK 60, 000 CASH FROM THE BUSINESS 6. TOTAL SALARIES PAID AMOUNTED TO 180,000 ADDITIONAL INFORMATION: BILLY SHEEHAN ONE OF THE DEBTORS, IS UNDERGOING FINANCIAL DIFFICULTIES. OF THE TOTAL 50,000 ACCOUNTS RECEIVABLE FROM BILLY SHEENAN, ONLY 40, 000 IS SURE OF COLLECTION; 10,000 IS DOUBTFUL UNUSED SUPPLIES AT THE END OF THE PERIOD AMOUNTED TO 20,000 UNPAID EMPLOYEE SALARIES AMOUNTED TO 30,000 REQUIREMENT: JOURNAL ENTRIES POST THE ENTRIES TO THE LEDGER UNADJUSTED TRIAL BALANCE ADJUSTING ENTRIES POST CLOSING TRIAL BALANCE CLOSING ENTRIES BALANCE SHEET AND INCOME STATEMENT
The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 800,000 gallons (778,500 gallons of good product) Production: Cream 443,500 gallons Liquid skim 335,000 gallons Sales: Cream 424,500 at $13 per gallon Liquid skim 324,000 at $12 per gallon The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. The Alfarm Corporation uses sales value at split off point method of allocating joint costs. What is the value of ending inventory for liquid skim? If you…
I need help with cost accounting.
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…
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $13,000. 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: Product Gallons L-Ten Triol Pioze 3,400 4,000 2,400 Total Revenue Total Costs Further Processing Cost per Gallon $0.50 Total Gross Profit 1.00 1.50 Eventual Market Price per Gallon $2.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. 5.00 6.00 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.
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Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.28 hour Quantity, 7 kilograms Rate, $14.00 per hour Price, $0.66 per kilogram Actual material purchases amounted to 340,400 kilograms at $0.690 per kilogram. Actual costs incurred in the production of 46,000 units were as follows: Direct labor: $197,340 for 13,800 hours Direct material: $225,354 for 326,600 kilograms
The Happy Wimp Co. is in the business of processing corn into oil, sugar, meal, and chaff. Each month the Happy Wimp Co. processes 20,000 pounds. The yields, additional processing costs, and selling prices are: Sales Value at Product Yield Split-off Point Oil 200 lbs. $1.25 Sugar 200 lbs. .80 Meal 500 lbs..40 Chaff 100 lbs..10 Added Costs Price per lb. .50 per lb. $2.00 .30 per lb. 1.30 .60 .10 .20 per lb. 0 Joint processing costs per 1,000 pounds are: raw materials $100, labor $80, and depreciation $4,000/20 = $200; Total $380. Required: a.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a main product. b.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a by-product.
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The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Direct Materials processed: 27,500 gallons (after shrinkage) Production: Sales: Sales Price: Separable costs in total: A. $35,600 B. $19,428 Butter Cream C. $33,580 Condensed Milk D. $13,000 Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk 12,500 15,000 gallons 12,000 14,500 $4.50 $8.00 $13,000 gallons $35,600 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $53,000. gallons The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.) gallons per gallon per gallon

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