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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff24fd486-d22c-49cf-ad22-3ec246a7d48d%2Fe0d8af4a-2f29-4bde-b705-c59b4f869d34%2F24uk2l_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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