[The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $100,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value Units at at Split-Off Product 1 2 3 $130,000 50,000 20,000 $200,000 Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is $2,000 instead of $20,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Split-Off 240 960 1,200 2,400 > Answer is complete but not entirely correct. Allocated Joint Cost $ 49,000 $ $ 49,000 X 2,000
[The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $100,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value Units at at Split-Off Product 1 2 3 $130,000 50,000 20,000 $200,000 Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is $2,000 instead of $20,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Split-Off 240 960 1,200 2,400 > Answer is complete but not entirely correct. Allocated Joint Cost $ 49,000 $ $ 49,000 X 2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:What percentage of joint cost is allocated to each of the three products using the sales value at split-off method?
Product
1
2
3
Percent of
Sales Value
%
%
%
![[The following information applies to the questions displayed below.]
The following information relates to a joint production process for three products, with a total joint production cost of
$100,000. There are no separable processing costs for any of the three products.
Product
1
2
3
Sales Value
at Split-Off
$130,000
50,000
20,000
$200,000
Product
1
2
3
Units at
Split-Off
240
960
1,200
2,400
Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is
$2,000 instead of $20,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for
accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the
three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%)
and final answers to nearest whole dollar amount.)
Answer is complete but not entirely correct.
Allocated
Joint Cost
$ 49,000 X
$ 49,000 X
$
2,000 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35294d3f-7b09-4433-9d96-30839af9ab00%2Fffa20b5c-158f-47d8-846a-6632f3b4384f%2Fu6zxonl_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
The following information relates to a joint production process for three products, with a total joint production cost of
$100,000. There are no separable processing costs for any of the three products.
Product
1
2
3
Sales Value
at Split-Off
$130,000
50,000
20,000
$200,000
Product
1
2
3
Units at
Split-Off
240
960
1,200
2,400
Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is
$2,000 instead of $20,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for
accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the
three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%)
and final answers to nearest whole dollar amount.)
Answer is complete but not entirely correct.
Allocated
Joint Cost
$ 49,000 X
$ 49,000 X
$
2,000 X
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