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
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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
31,000
177,250
101,000 pounds
101,000 pounds
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.
Transcribed Image Text:20 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 31,000 177,250 101,000 pounds 101,000 pounds 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.
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