Allocation of joint cost as per sales value at split off method. Given information: Joint cost is $530 ( $ 340 + $ 190 ) . Selling price at split off point of soy meal is $1.24 and soy oil is $4.25. Production of soy meal is 575 pounds. Production of soy oil is 160 gallons.

Question

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Answer 1

Question

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

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Answer 2

Question

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Expert Solution & Answer

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Answer 3

Question

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Expert Solution & Answer

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Answer 4

Question

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Expert Solution & Answer

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Answer 5

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Answer 6

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

Answer 7

Chapter 16, Problem 16.23E

1.

a.

To determine

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.

Answer 8

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

Answer 9

b.

To determine

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

Given information:

Joint cost is $530

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

575 pounds of soy meal is processed into 725 pounds of soy cookies.

160 gallons of soy oil is processed into 640 quarts of soyola.

Answer 10

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Answer 11

2.

To determine

To identify: Decision of further processing and effect of allocation method on this decision.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 16 - Give two examples of industries in which joint...Ch. 16 - What is a joint cost? What is a separable cost?Ch. 16 - Distinguish between a joint product and a...Ch. 16 - Why might the number of products in a joint-cost...Ch. 16 - Provide three reasons for allocating joint costs...Ch. 16 - Why does the sales value at splitoff method use...Ch. 16 - Prob. 16.7Q Ch. 16 - Distinguish between the sales value at splitoff...Ch. 16 - Give two limitations of the physical-measure...Ch. 16 - How might a company simplify its use of the NRV...

Allocation of joint cost as per sales value at split off method. Given information: Joint cost is $530 ( $ 340 + $ 190 ) . Selling price at split off point of soy meal is $1.24 and soy oil is $4.25. Production of soy meal is 575 pounds. Production of soy oil is 160 gallons.

To compute: Allocation of joint cost as per sales value at split off method. Given information: Joint cost is $530 ($340+$190). Selling price at split off point of soy meal is $1.24 and soy oil is $4.25. Production of soy meal is 575 pounds. Production of soy oil is 160 gallons.

To identify: Decision of further processing and effect of allocation method on this decision.

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Chapter 16 Solutions

To compute: Allocation of joint cost as per sales value at split off method.

Given information:

Joint cost is $530 ($340+$190).

Selling price at split off point of soy meal is $1.24 and soy oil is $4.25.

Production of soy meal is 575 pounds.

Production of soy oil is 160 gallons.