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

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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