The following information relates to a joint production process for three products, with a total joint production cost of $135,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product 1 2 Sales Value at Units at Split-Off Split-Off $189,000 260 54,000 27,000 $270,000 sume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is 700 instead of $27,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and es the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using e sales value at split-off method? 780 1,560 2,600 Allocated Joint Cost

The following information relates to a joint production process for three products, with a total joint production cost of $135,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product 1 2 Sales Value at Units at Split-Off Split-Off $189,000 260 54,000 27,000 $270,000 sume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is 700 instead of $27,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and es the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using e sales value at split-off method? 780 1,560 2,600 Allocated Joint Cost

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 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...

See similar textbooks

Similar questions

Product 1 2 3 Allocated Joint Cost
The following information relates to a joint production process for three products, with a total joint production cost of $125,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 150,000 Product 1 2 3 62,500 37,500 $ 250,000 Assume that the total sales value at the split-off point for product 1 is $62,500 instead of $150,000 and the sales value of product 3 is $2,500 instead of $37,500. 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 360 840 1,200 2,400 Allocated Joint Cost
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
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 $125,000. There are no separable processing costs for any of the three products. Product 1 2 Sales Value at Units at Split-Off $150,000 62,500 37,500 $ 250,000 Split-Off 360 840 1,200 2,400 Assume that the total sales value at the split-off point for product 1 is $62,500 instead of $150,000 and the sales value of product 3 is $2,500 instead of $37,500. 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 (.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 $180,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 252,000 Product 1 2 3 72,000 36,000 $360,000 Assume that the total sales value at the split-off point for product 1 is $108,000 instead of $252,000 and the sales value of product 3 is $3,600 instead of $36,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses an asset recognition method (the NRV 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 350 1,050 2,100 3,500 Allocated Joint Cost
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 $115,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Units at Split-Off $161,000 Product 1 2 3 34,500 34,500 $230,000 Split-Off 440 770 990 2,200 What percentage of joint cost is allocated to each of the three products using the physical units method? Percent of Sales Units % % %
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 $140,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product 1 2 3 Sales Value at Split-Off $ 154,000 84,000 42,000 $ 280,000 Assume that the total sales value at the split-off point for product 1 is $56,000 instead of $154,000 and the sales value of product 3 is $2,800 instead of $42,000. 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.) Units at Split-Off 405 945…
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 $135,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 189,000 54,000 27,000 $ 270,000 Product 1 2 3 Units at Split-Off 260 780 1,560 2,600 What percentage of joint cost is allocated to each of the three products using the physical units method? Percent of Sales Units % % %
[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 $120,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $180,000 170 2 $36,000 510 3 $24,000 1,020 $240,000 1,700 Assume that the total sales value at the split-off point for product 1 is $84,000 instead of $180,000 and the sales value of product 3 is $2,400 instead of $24,000. 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?
The following information relates to a joint production process for three products, with a total joint production cost of $200,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 280,000 585 2 80,000 1,170 3 40,000 2,145 $ 400,000 3,900 Assume that the total sales value at the split-off point for product 1 is $120,000 instead of $280,000 and the sales value of product 3 is $4,000 instead of $40,000. 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?
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 Sales Value at Split-Off Units at Split-Off 1 $ 227,500 680 2 87,500 1,020 3 35,000 1,700 $ 350,000 3,400 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?
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. Product 123 Sales Value at Split-Off $ 227,500 87,500 35,000 $ 350,000 Product 1 2 3 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? Units at Split-Off 680 1,020 1,700 3,400 Percent of Sales Value % % %