7 HomeworkRequired information[The following information applies to the questions displayed below.]Product123The following information relates to a joint production process for three products, with a total joint production cost of$175,000. There are no separable processing costs for any of the three products.Sales Value atSplit-Off$ 227,50087,50035,000$ 350,000Product123Units atSplit-Off680Allocated JointCostSaved1,0201,7003,400252Fnewconnect.mheducation.Assume that the total sales value at the split-off point for product 1 is $87,500 instead of $227,500 and the sales value of product 3 is$3,500 instead of $35,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method foraccounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to thethree 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.) Required information[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$175,000. There are no separable processing costs for any of the three products.Product3Product123Sales Value atSplit-Off$ 227,50087,50035,000$ 350,000Units atSplit-OffAssume that the total sales value at the split-off point for product 1 is $87,500 instead of $227,500 and the sales value of product 3 is$3,500 instead of $35,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product anduses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products usingthe sales value at split-off method?Allocated JointCostSaved1,0201,7003,400

The approach of allocating joint costs based on each product's proportional part of the market or…

The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 227,500 87,500 35,000 $ 350,000 Product 1 2 Assume that the total sales value at the split-off point for product 1 is $87,500 instead of $227,500 and the sales value of product 3 is $3,500 instead of $35,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 680 1,020 1,700 3,400 Allocated Joint Cost

The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 227,500 87,500 35,000 $ 350,000 Product 1 2 Assume that the total sales value at the split-off point for product 1 is $87,500 instead of $227,500 and the sales value of product 3 is $3,500 instead of $35,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 680 1,020 1,700 3,400 Allocated Joint Cost

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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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: DF1 DF2 BP Total Units produced 27,000 18,000 15,000 60,000 Allocated joint costs ? ? ? $ 560,000 Sales value at split-off $ 561,000 $ 187,000 $ 102,000 $ 850,000 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?
17 oints Split Corporation manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: Units produced Allocated joint costs Sales value at split-off 01:39:59 Sales value if processed further Additional costs for further processing Product X's sales value at the split-off point is: 26,000 $ 161,280 Z Total 22,000 $ 108,000 18,000 $180,000 66,000 $449,280 ? 150,000 66,000 250,000 624,000 46,000 186,000 341,000 279,000 1,268,000 74,000 648,000 0 Multiple Choice $156,000. $19,000. $190,000 $224,000 $117,000.
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The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product 1 2 Sales Value at Split-Off $ 181,500 Product 1 2 3 99,000 49,500 $ 330,000 Assume that the total sales value at the split-off point for product 1 is $66,000 instead of $181,500 and the sales value of product 3 is $3,300 instead of $49,500. 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.) Units at Split-Off 320 960 1,920 3,200 Allocated Joint Cost
Sunland Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Product 10 Product 12 Product 14 (c) Product Your answer is partially correct. Product 10 Product 12 Product 14 $ Sales Value at Split-Off Point $59,700 $ 15,800 $ 55,400 Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) Cost to Process Further eTextbook and Media $100,100 30,800 149,700 Sales Value after Further Processing $191,000 34,700 Decision 214,000 Should be processed further Should be sold at the split-off point Should be processed further Assistance Used