Allocation of joint cost as per sales value at split off method: Given information: Joint cost is $62,000 Selling price of chocolate powder liquor base is $20. Selling price of milk chocolate liquor base is $60.

Question

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Answer 1

Question

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

1.b.

To determine

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

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

2.c.

To determine

To compute: Gross margin percentage under NRV method.

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

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Answer 2

Question

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

1.b.

To determine

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

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

2.c.

To determine

To compute: Gross margin percentage under NRV method.

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

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Answer 3

Question

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

1.b.

To determine

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

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

2.c.

To determine

To compute: Gross margin percentage under NRV method.

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

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See solution

Answer 4

Question

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

1.b.

To determine

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

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

2.c.

To determine

To compute: Gross margin percentage under NRV method.

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

1.b.

To determine

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

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

2.c.

To determine

To compute: Gross margin percentage under NRV method.

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

Answer 6

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

Answer 7

Chapter 16, Problem 16.29P

1.a.

To determine

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

Given information:

Joint cost is $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

Answer 8

1.b.

To determine

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

Answer 9

1.b.

To determine

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

Answer 10

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

Answer 11

1.c.

To determine

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

Given information:

Joint cost is $62,000

Total production of chocolate powder is 9,100 pounds.

Total production of milk chocolate is 14,980 pounds.

Selling price per pound of chocolate powder is $9 per pound.

Selling price per pound of milk chocolate is $10 per pound.

Separable cost is $110,215($50,100+$60,115)

Answer 12

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

Answer 13

1.d.

To determine

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

Answer 14

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

Answer 15

2.a.

To determine

To compute: Gross margin percentage under sales value at split-off point.

Answer 16

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

Answer 17

2.b.

To determine

To compute: Gross margin percentage under physical measure method.

Answer 18

2.c.

To determine

To compute: Gross margin percentage under NRV method.

Answer 19

2.c.

To determine

To compute: Gross margin percentage under NRV method.

Answer 20

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

Answer 21

2.d.

To determine

To compute: Gross margin percentage under constant gross margin percentage NRV method.

Answer 22

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

Answer 23

3.

To determine

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.

Answer 24

Expert Solution & Answer

Answer 25

Expert Solution & Answer

Answer 26

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Check out a sample textbook solution

See solution

Answer 27

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 $62,000 Selling price of chocolate powder liquor base is $20. Selling price of milk chocolate liquor base is $60.

To compute: Allocation of joint cost as per sales value at split off method: Given information: Joint cost is $62,000 Selling price of chocolate powder liquor base is $20. Selling price of milk chocolate liquor base is $60.

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

To compute: Allocation of joint cost as per constant gross margin percentage NRV method: Given information: Joint cost is $62,000. Sales value of total production as computed is $968,800. Separable cost is $110,215($50,100+$60,115)

To compute: Gross margin percentage under sales value at split-off point.

To compute: Gross margin percentage under physical measure method.

To compute: Gross margin percentage under NRV method.

To compute: Gross margin percentage under constant gross margin percentage NRV method.

Effect on operating income due to change in decision to further process both intermediate products. Given information: Sales value after process is computed to be $81,900. Sales value at split-off is computed as $14,000. Separable cost is $50,100.

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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 $62,000

Selling price of chocolate powder liquor base is $20.

Selling price of milk chocolate liquor base is $60.

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

Given information:

Joint cost is $62,000.

Sales value of total production as computed is $968,800.

Separable cost is $110,215($50,100+$60,115)

Effect on operating income due to change in decision to further process both intermediate products.

Given information:

Sales value after process is computed to be $81,900.

Sales value at split-off is computed as $14,000.

Separable cost is $50,100.