Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 16, Problem 16.19E

1.

To determine

To compute: Allocation of joint cost as per physical measure method.

Given information:

Joint cost is $120,000 per batch of output.

Production per batch is 10,000 gallons.

2.

To determine

To compute: Allocation of joint cost as per NRV method.

Given information:

Joint cost is $120,000 per batch of output.

Production of product M is computed to be 2,500 gallons and product T is computed to be 7,500 gallons.

Selling price of product M is $21 and Product T is $14.

3.

To determine

To prepare: Product-line income statements per batch requirements 1 and 2.

4.

To determine

To prepare: Allocation of joint cost under NRV method.

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