Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: $2 per gallon 1 per gallon Kerosene 3 per gallon Gasoline Diesel Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Gasoline Diesel Kerosene Totals Allocation is $ $

Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: $2 per gallon 1 per gallon Kerosene 3 per gallon Gasoline Diesel Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Gasoline Diesel Kerosene Totals Allocation is $ $

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 17E: Joint cost allocation-market value at split-off method Toil Oil processes crude oil to jointly...

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Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: Gasoline $2 per gallon Diesel 1 per gallon Kerosene 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product
Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: Gasoline $2 per gallon Diesel 1 per gallon Kerosene 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.
Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $90,000 in the production of 20,000 gallons of P and 50,000 gallons of Q. Kingston can sell P and Q at split-off for $2.00 per gallon and $2.20 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows: P Q Separable processing costs $ 22,000 $ 42,000 Sales price (per gallon) if processed beyond split-off $ 4 $ 6 what woulkd be the joint cost allocated to Q under the relative-sales-value method ? Note: Do not round intermediate calculations.
Oak View Chemicals produces two main products. M-10 and M-20, and one by-product, B-60, from a single input. Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,000 gallons of Chem-X with a cost of $90,000. Additional information regarding a batch follows. Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income. If processed further Product Units produced Units sales value at split off Additional Cost(per unit) Sales value(per unit) M-10 20000 $ 5.00 $ 2.00 $ 6.00 M-20 14000 $ 10.00 $ 4.00 $ 16.00 B-60 5000 $ 0.50 NA NA Required The joint cost allocated to product M-10 at Oak View…
Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,000 gallons of Chem-X with a cost of $90,000. Additional information regarding a batch follows. If Processed Further Product Units Produced Unit Sales Value at Split-off Additional Costs (Per Unit) Sales Value (Per Unit) M-10 22,000 $ 5.00 $ 2.00 $ 6.00 M-20 14,000 $ 10.00 $ 4.00 $ 16.00 B-60 5,000 $ 0.50 NA NA Oak View Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. Required: Under these assumptions, the following product(s) should be processed further and then sold:
Oak View Chemicals produces two main products. M-10 and M-20, and one by-product, B-60, from a single input. Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,000 gallons of Chem-X with a cost of $90,000. Additional information regarding a batch follows. If processed further Product Units produced Units sales value at split off Additional Cost(per unit) Sales value(per unit) M-10 20000 $ 5.00 $ 2.00 $ 6.00 M-20 14000 $ 10.00 $ 4.00 $ 16.00 B-60 5000 $ 0.50 NA NA Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income. Required Under these assumptions, the following product(s) should be…
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be proc- essed further. Information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Product Gallons Price per Gallon L-Ten 3,500 S0.50 $2.00 Triol 4,000 2,500 1.00 5.00 Pioze 1.50 6.00 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if it cost S2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further ProcessingCost per Gallon Eventual MarketPrice per Gallon L-Ten 3,700 $0.50 $2.00 Triol 4,000 1.00 5.00 Pioze 2,300 1.50 6.00 See screenshots for needed information. I am having trouble with some of it.
Joint Products Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,000 gallons of productA and 1,000 gallons of product B to the split-off point costs $5,600. The sales value at split-off is $2per gallon for product A and $30 per gallon for product B. Product B requires additional separableprocessing beyond the split-off point at a cost of $2.50 per gallon before it can be sold at a price of$34 per gallon.Required What is the company’s cost to produce 1,000 gallons of product B?
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchase in 1,000-gallon drums for $2,000. Processing costs are $3,000 to process the 1,000 gallons of Duo into 800 gallons of Big and 200 gallons of Mini. The selling price is $9 per gallon for Big and $4 per gallon for Mini. If the sales value at split-off method is used to allocate joint costs to the final products, the per-gallon cost (rounded to the nearest cent) of producing Big is Select one: a. $5.00 per gallon. b. $5.63 per gallon. c. $4.50 per gallon. X d. $3.38 per gallon.
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $13,000. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further ProcessingCost per Gallon Eventual MarketPrice per Gallon L-Ten 3,600 $0.50 $2.00 Triol 4,000 1.00 5.00 Pioze 2,400 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. Total Revenue $fill in the blank 1 Total Costs $fill in the blank 2 Total Gross Profit $fill in the blank 3 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint…
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further ProcessingCost per Gallon Eventual MarketPrice per Gallon L-Ten 3,400 $0.50 $2.00 Triol 4,000 1.00 5.00 Pioze 2,400 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.