The Lakers Corporation uses a joint manufacturing process that produces threeproducts. The process produced1,000 units of Product A, 500 units of Product B, and500 units of Product C in January. The joint cost incurred in this process is $200,000.All three products can be sold at the split-off point; $20 for Product A, $200 for ProductB, and $160 for Product C. Alternatively, the products can be processed further andsold at a final stage. The following information relates to processing these productsfurther:Final SellingPrice$ 40300180SeparableCosts$15,00030,0002,000ProductB'CAt the inventory at the end of January includes 100 units of Product A, 300 units ofProduct B, and 200 units of Product C.Required:a. Calculate the value of ending inventory of the three products based on (1) the salesvalue at split-off and (2) the physical measures approach using units.b. Assume that product A is a byproduct and joint costs are allocated based on numberof units. Lakers recognizes byproducts as a cost reduction at either (1) productionor (2) sales. Based on this information, calculate the value of ending inventory forproducts A, B, and C.

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Description: The Lakers Corporation uses a joint manufacturing process that produces threeproducts. The process produced1,000 units of Product A, 500 units of Product B, and500 units of Product C in January. The joint cost incurred in this process is $200,000.Al

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The Lakers Corporation uses a joint manufacturing process that produces three products. The process produced 1,000 units of Product A, 500 units of Product B, and 500 units of Product C in January. The joint cost incurred in this process is $200,000. All three products can be sold at the split-off point; $20 for Product A, $200 for Product B, and $160 for Product C. Alternatively, the products can be processed further and sold at a final stage. The following information relates to processing these products further: Final Selling Price $ 40 300 180 Separable Costs $15,000 30,000 2,000 Product A B' At the inventory at the end of January includes 100 units of Product A, 300 units of Product B, and 200 units of Product C. Required: a. Calculate the value of ending inventory of the three products based on (1) the sales value at split-off and (2) the physical measures approach using units. b. Assume that product A is a byproduct and joint costs are allocated based on number of units. Lakers recognizes byproducts as a cost reduction at either (1) production or (2) sales. Based on this information, calculate the value of ending inventory for products A, B, and C.

The Lakers Corporation uses a joint manufacturing process that produces three products. The process produced 1,000 units of Product A, 500 units of Product B, and 500 units of Product C in January. The joint cost incurred in this process is $200,000. All three products can be sold at the split-off point; $20 for Product A, $200 for Product B, and $160 for Product C. Alternatively, the products can be processed further and sold at a final stage. The following information relates to processing these products further: Final Selling Price $ 40 300 180 Separable Costs $15,000 30,000 2,000 Product A B' At the inventory at the end of January includes 100 units of Product A, 300 units of Product B, and 200 units of Product C. Required: a. Calculate the value of ending inventory of the three products based on (1) the sales value at split-off and (2) the physical measures approach using units. b. Assume that product A is a byproduct and joint costs are allocated based on number of units. Lakers recognizes byproducts as a cost reduction at either (1) production or (2) sales. Based on this information, calculate the value of ending inventory for products A, B, and C.

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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