Joint cost allocation as per sales value at split off method. Given information: Joint cost is $105,000. Sales value of C in December is 45,000. Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500. Separable cost of A, B and D is $240,000, $60,000 and $45,000 Revenue from A, B and D is $375,000, $150,000 and $75,000.

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Answer 1

Question

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

b.

To determine

To compute: Joint cost allocation as per physical measure method.

c.

To determine

To compute: Joint cost allocation as per NRV method.

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

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The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3 Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600. 5 Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. 6 Returned merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the goods sold was $9,400. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise with a list price of $236,000 to customers who used VISA and who redeemed $8,000 of pointof- sale coupons. The cost…

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Answer 2

Question

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

b.

To determine

To compute: Joint cost allocation as per physical measure method.

c.

To determine

To compute: Joint cost allocation as per NRV method.

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

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Answer 3

Question

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

b.

To determine

To compute: Joint cost allocation as per physical measure method.

c.

To determine

To compute: Joint cost allocation as per NRV method.

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

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Answer 4

Question

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

b.

To determine

To compute: Joint cost allocation as per physical measure method.

c.

To determine

To compute: Joint cost allocation as per NRV method.

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

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Answer 5

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

b.

To determine

To compute: Joint cost allocation as per physical measure method.

c.

To determine

To compute: Joint cost allocation as per NRV method.

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

Answer 6

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

Answer 7

Chapter 16, Problem 16.28P

1.

a.

To determine

To compute: Joint cost allocation as per sales value at split off method.

Given information:

Joint cost is $105,000.

Sales value of C in December is 45,000.

Sales value at split-off of A, B and D in December is $75,000, $62,500 and $67,500.

Separable cost of A, B and D is $240,000, $60,000 and $45,000

Revenue from A, B and D is $375,000, $150,000 and $75,000.

Answer 8

b.

To determine

To compute: Joint cost allocation as per physical measure method.

Answer 9

b.

To determine

To compute: Joint cost allocation as per physical measure method.

Answer 10

c.

To determine

To compute: Joint cost allocation as per NRV method.

Answer 11

c.

To determine

To compute: Joint cost allocation as per NRV method.

Answer 12

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

Answer 13

2.

To determine

To compute: Effect on operating income due to different decisions about the further processing of products A, B or D.

Given information:

For A

Sales value of after process is computed to be $375,000.

Sales value of at split-off is computed as $75,000.

Separable cost is $240,000.

For B

Sales value of after process is computed to be $150,000

Sales value of at split-off is computed as $62,500.

Separable cost is $60,000.

For D

Sales value of after process is computed to be $75,000

Sales value of at split-off is computed as $67,500

Separable cost is $45,000.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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: Joint cost allocation as per physical measure method.

To compute: Joint cost allocation as per NRV method.

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