Allocation of joint cost as per NRV method. Given information: Joint cost is $150,000. Gallons of chemical in batch are 2,500 gallons. Gallons sold for human use are 1,700 gallons Gallons sold for veterinarian are 300 gallons Selling price per gallon for gallons sold for human use is $585. Selling price per gallon for gallons sold for veterinarian is $410.

Question

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Answer 1

Question

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

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

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

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Answer 2

Question

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

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

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

Expert Solution & Answer

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Answer 3

Question

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

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

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

Expert Solution & Answer

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Answer 4

Question

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

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

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

Expert Solution & Answer

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See solution

Answer 5

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

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

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

Answer 6

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

Answer 7

Chapter 16, Problem 16.27P

1.

To determine

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

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

Answer 8

2.

To determine

To compute: Cost of ending inventory.

Answer 9

2.

To determine

To compute: Cost of ending inventory.

Answer 10

3.

To determine

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

Answer 11

3.

To determine

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

Answer 12

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

Answer 13

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

Answer 14

5.

To determine

To examine: Decision to accept or reject project.

Answer 15

5.

To determine

To examine: Decision to accept or reject project.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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...

To compute: Cost of ending inventory.

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

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

To examine: Decision to accept or reject project.

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Chapter 16 Solutions