The Mallak Company produced three joint products at a joint cost of $102,000. Two of these products were processed further. Production and sales were: Product P Q R Weight Sales 301,000 pounds $ 246,750 101,000 pounds 31,000 101,000 pounds 177,250 Additional Processing Costs $ 201,000 0 101,000 Assume Q is a by-product and Mallak uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R? Note: Do not round intermediate calculations

The Mallak Company produced three joint products at a joint cost of $102,000. Two of these products were processed further. Production and sales were: Product P Q R Weight Sales 301,000 pounds $ 246,750 101,000 pounds 31,000 101,000 pounds 177,250 Additional Processing Costs $ 201,000 0 101,000 Assume Q is a by-product and Mallak uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R? Note: Do not round intermediate calculations

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...

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HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
This topic is about cost allocation of joint products and by products.
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $195,000. Additional information follows. Units Product Produced 81,000 56,700 24,300 ΚΑΙ KB KC Sales Value at Split-Off $256,000 224,000 160,000 Required A Required B If Processed Further Total cost of product KA Sales Values Additional Costs $54,000 42,000 35,000 Required: a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $54,000 if processed further)? b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $42,000 if processed further)? $330,000 270,000 240,000 Complete this question by entering your answers in the tabs below. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what…
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point method. Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Additional Sales Value at Final Sales Products Processing Costs P130,000 100,000 140,000 Split-off Value P300,000 120,000 250,000 420,000 230,000 A B 400,000 P1,050,000 P670,000 P370,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? b. If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?
Agao Chemical Company manufactures three chemicals (NY29, TX38, and CA55) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: NY29 TX38 CA55 Sales value at split-off point P5,000 P16,000 P12,000 Allocated joint costs P6,000 P6,000 P6,000 Sales value after further processing P9,000 P20,000 P18,000 Cost of further processing P2,000 P5,000 P3,000 For which product(s) above would it be more profitable for Agao to sell at the split-off point rather than process further?
VE The G-Lab Company produced three joint products at a joint cost of $150,000. Two of these products were processed further. Production and sales were: K Product Sales Additional Processing Costs 200,000 0 100,000 If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product A? (Do not round intermediary calculations. Round final answer to the nearest cent) A B с Weight 100,000 lbs 200,000 lbs 300,000 lbs. OA $25,000.00 B. $100,000.00 OC. $75,000.00 OD. $81,666.67 245,000 30,000 175,000
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Subject: Cost Accounting
The joint costs allocated to product Y were
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: PRODUCTS X Y ТОTAL Units produced 21,000 21,000 10,500 52,500 Joint costs ? $282,000 Sales value at split-off $315,000 $157,500 $10,500 $483,000 Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were Multiple Choice $181,000. $157,500. $78,750. $113,800.
Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional DBB-1 16,800 $65 $ 115,500 16,800 DBB-2 25,200 $ 25 processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off The amount of joint costs allocated to product DBB-3 using the net realizable value method is: $ 50 $ 46,200 25,200 DBB-3 $ 35 37,200 $75 $ 68,200 37,200 $ 55 Total 79,200 $ 229,900 79,200 $ 3,760,000
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $193,000. Additional information follows. If Processed Further Units Sales Value at Split-Off $264,000 231,000 165,000 Product Produced Sales Values Additional Costs 80,500 56,350 24,150 $310,000 270,000 240,000 $54,000 45,000 35,000 КА KB KC Required: a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KÁ (including $54,000 if processed further) ? b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $45,000 if processed further)?