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The Spokane Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 28 table covers, 76 chair covers and 3 pounds of package filler from 100 pounds of bottles. A (Click the icon to view additional information.) Read the requirements. Requirement 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC? First, allocate the joint costs. (Round the weighting values to two decimal places.) More Info Table Chair Covers Covers Total In June, SRC had no beginning inventory. It purchased and processed 130,000 pounds of bottles at a cost of $520,000. SRC sold 22,000 table covers for $17 each, 83,000 chair covers for $3 each, and 2,000 pounds of package filler at $0.80 per pound. Sales values at splitoff Weighting Joint costs allocated Print Done Enter any number in the edit fields and then click Check Answer.

The Spokane Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 28 table covers, 76 chair covers and 3 pounds of package filler from 100 pounds of bottles. A (Click the icon to view additional information.) Read the requirements. Requirement 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC? First, allocate the joint costs. (Round the weighting values to two decimal places.) More Info Table Chair Covers Covers Total In June, SRC had no beginning inventory. It purchased and processed 130,000 pounds of bottles at a cost of $520,000. SRC sold 22,000 table covers for $17 each, 83,000 chair covers for $3 each, and 2,000 pounds of package filler at $0.80 per pound. Sales values at splitoff Weighting Joint costs allocated Print Done Enter any number in the edit fields and then click Check Answer.

FINANCIAL ACCOUNTING
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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Requirements 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC? 2. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for SRC? 3. Discuss the difference between the two methods of accounting for byproducts, focusing on what conditions are necessary to use each method. Print Done
Transcribed Image Text:Requirements 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC? 2. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for SRC? 3. Discuss the difference between the two methods of accounting for byproducts, focusing on what conditions are necessary to use each method. Print Done
The Spokane Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 28 table covers, 76 chair covers and 3 pounds of package filler from 100 pounds of bottles. i (Click the icon to view additional information.) Read the requirements. Requirement 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SROC? First, allocate the joint costs. (Round the weighting values to two decimal places.) More Info Table Chair Covers Covers Total In June, SRC had no beginning inventory. It purchased and processed 130,000 pounds of bottles at a cost of $520,000. SRC sold 22,000 table covers for $17 each, 83,000 chair covers for $3 each, and 2,000 pounds of package filler at $0.80 Sales values at splitoff Weighting per pound. Joint costs allocated Print Done Enter any number in the edit fields and then click Check Answer.
Transcribed Image Text:The Spokane Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 28 table covers, 76 chair covers and 3 pounds of package filler from 100 pounds of bottles. i (Click the icon to view additional information.) Read the requirements. Requirement 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SROC? First, allocate the joint costs. (Round the weighting values to two decimal places.) More Info Table Chair Covers Covers Total In June, SRC had no beginning inventory. It purchased and processed 130,000 pounds of bottles at a cost of $520,000. SRC sold 22,000 table covers for $17 each, 83,000 chair covers for $3 each, and 2,000 pounds of package filler at $0.80 Sales values at splitoff Weighting per pound. Joint costs allocated Print Done Enter any number in the edit fields and then click Check Answer.
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