Homework Help is Here – Start Your Trial Now!
Business
Accounting
The joint costs of purchasing and processing the crude vegetable oil were $96,000. South had no beginning or ending inventories. Sales of product C in November were $24,000. Products A, B, and D were further refined and then sold. Data related to November follow: Separable Processing Costs to Make Super Products $ Revenues Super A 249,600 $ 320,000 Super B 102,400 160,000 Super D 152,000 160,000 South had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the November

The joint costs of purchasing and processing the crude vegetable oil were $96,000. South had no beginning or ending inventories. Sales of product C in November were $24,000. Products A, B, and D were further refined and then sold. Data related to November follow: Separable Processing Costs to Make Super Products $ Revenues Super A 249,600 $ 320,000 Super B 102,400 160,000 Super D 152,000 160,000 South had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the November

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please Solve with Explanation and Do not Give Image Format otherwise down vote

● More info ● • Product A, 322,400 gallons Product B, 119,600 gallons • Product C, 52,000 gallons • Product D, 26,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $96,000. South had no beginning or ending inventories. Sales of product C in November were $24,000. Products A, B, and D were further refined and then sold. Data related to November follow: Separable Processing Costs to Make Super Products $ Revenues 320,000 160,000 160,000 Super A 249,600 $ Super B 102,400 Super D 152,000 South had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the November alternative would have yielded the following revenues for the November production: • Product A, $84,000 Product B, $72,000 Product D, $60,000 Show Transcribed Text
Transcribed Image Text:● More info ● • Product A, 322,400 gallons Product B, 119,600 gallons • Product C, 52,000 gallons • Product D, 26,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $96,000. South had no beginning or ending inventories. Sales of product C in November were $24,000. Products A, B, and D were further refined and then sold. Data related to November follow: Separable Processing Costs to Make Super Products $ Revenues 320,000 160,000 160,000 Super A 249,600 $ Super B 102,400 Super D 152,000 South had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the November alternative would have yielded the following revenues for the November production: • Product A, $84,000 Product B, $72,000 Product D, $60,000 Show Transcribed Text
Requirements 1. 2. Compute the gross-margin percentage for each product sold in November, using the following methods for allocating the $96,000 joint costs: a. Sales value at splitoff b. Physical measure C. NRV Could South Oil have increased its November operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend.
Transcribed Image Text:Requirements 1. 2. Compute the gross-margin percentage for each product sold in November, using the following methods for allocating the $96,000 joint costs: a. Sales value at splitoff b. Physical measure C. NRV Could South Oil have increased its November operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 7 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS