secret-Windsor & Sons produces tomato juice and tomato pureefrom fresh tomatoes grown by local farmers. Thecompany purchases large crates of tomatoes and thenwashes, sorts, scalds, peels, and crushes them, at whichpoint the juice and the pulp are separately identifiable.Windsor currently processes the pulp further totransform it into his great-great-grandmother'srecipe spaghetti sauce. The specifics on each of theseproducts for one month are as follows. Joint processingcosts $173,000 Quantity of tomato juice produced 6,000gallons Value of tomato juice $8 per gallon Quantity oftomato puree produced 14,000 pounds Additional costto make spaghetti sauce $23,000 Final sales value ofspaghetti sauce $212,000Using the NRV method for allocating joint costs, specifyhow much joint cost will be allocated to the juice and tothe puree/spaghetti sauce. (Round proportion to 4decimal places, e.g. 0.2516 and final answers to 2decimal places, e.g. 15.25.)JuiceAllocatedjoint costsAllocatedjoint costs$enter a dollaramountrounded to 2decimal placesWindsor recently became aware of consumerpreferences for flavored tomato juice. With some slightmodifications to his facility, he could process the tomatojuice further and turn it into clam-flavored tomato juicefor an additional processing cost of $1,500. With nochange in total volume, this flavored juice could sell for$60,000. Given this new information, recalculate the jointcost allocations for both joint products under the NRVmethod. (Round proportion to 4 decimal places, e.g.0.2516 and final answers to 2 decimal places, e.g. 15.25.)JuicePureeNetbenefit$enter a dollaramountrounded to 2decimal placesPuree/Sauce$enter a dollaramount roundedto 2 decimalplacesSenter a dollaramountAssuming that Windsor could otherwise sell the tomatopuree as-is for $155,000 (instead of turning it intospaghetti sauce), would you recommend that he processboth of these products past the split-off point? Showhow much better or worse off Windsor would be if thepuree and the juice are both processed further.Juice$enter a dollaramountrounded to 2decimal placesPureeSenter a dollaramountWindsor & Sons is therefore select an option (Better OrWorse Off) a total ($enter a dollar amount) by processingboth products beyond the split-off point.

When two or more products are produced from one process, the concept of allocation of joint cost…

Answered: Windsor & Sons is therefore select an…

Windsor & Sons is therefore select an option (Better Or Worse Off) a total (Senter a dollar amount) by processing both products beyond the split-off point.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

“Managers should consider only additional revenues and separable costs when making decisions about selling at splitoff or processing further.”Do you agree? Explain.
please help me solve exercise 1 and explain every step. thank you!
hello, help please
Which one of the following is not an assumption of CVP analysis? The behavior of costs and revenues are linear within the relevant range. Sales mix remains constant. All units produced are sold. All costs are variable costs.
You have been asked to decide about one of two mutually exclusive alternatives (A & B). The following table gives the initial costs, annual savings in labor costs, and the expected life of two pieces of equipment. Plot PW vs. i for each equipment on the same graph and identify the AAIRR from the graph (i for the intersection). Then, highlight the corresponding value of i in yellow in your spreadsheet. High-cost Equipment (A) Low-cost Equipment (B) Initial Cost $137,910 $100,000 Savings in Labor Costs $42,000 / year $32,000 / year Life 5 years 5 years
Awla Ltd. sells two products as follows: Product A Product B Units sold 2,625 3,500 Selling price per unit $400 $350 Variable costs per unit $160 $210 The company has the following fixed costs: Product A, $590,000, Product B, $883,200, and common fixed costs of $293,200.
Hi, I also need help finding the highest acceptable transfer price and the lowest acceptable transfer price. Thanks
Allocating a transaction price to multiple performance obligations includes which of the following steps: O Complete each performance obligation before recognizing any revenue from the contract. O All of these choices are correct. O Consolidate the components of the contract to two performance obligations because a contract should not have more than two performance obligations. O Allocate the transaction price based on relative fair values.The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).
Select Among the choices, this transfer prices basis is considered as the most inferior one: a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer price
Q. 8 Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do (Q8,9,10 plz)
REQUIRED Use the information provided below to answer the following questions: 3.1. Calculate the Payback period for the HMC. 3.2. Calculate the Net Present Value for both the HMC and VMC. 3.3. Calculate the Internal Rate of Return (IRR) for the HMC and VMC. 3.4. Which configuration of the CNC machining centres should SMT purchase, if any? Motivate your answer by referring to the answers obtained in questions 3.3 and 3.4. INFORMATION Southern Manufacturing Tools Limited (SMT) is considering the purchase of a Computer Numerical Control (CNC) machining centre for its operations. Two configurations of the CNC machining centres are available: horizontal CNC machining centre (HMC) and vertical CNC machining centre (VMC). Both the HMC and VMC will require an initial investment of R10 000 000, will have a useful life of 7 years and a residual value of R1 500 000. SMT uses the straight-line method of depreciation. The expected net cash inflows of the VMC are expected to be R2 100 000…
In which scenario would an adjusted sales value be used to assign costs? a. If abnormal losses occur during production of joint products b. If a joint product is to be processed further after the point of separation c. If one of the joint products has negligible market value d. If joint products are separately identifiable before split-off point