Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 19, Problem 12E
To determine
Compute the amount of joint production costs allocated to each product using the weighted average method.
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Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company’s core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Management at Carving Creations estimates that for the time it takes to produce 10 cubic yards of wood chips in the joint production process, only 2 cubic yards of sawdust are produced.
Given this information, allocate the joint costs of production to each product using the weighted average method.
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $179,400 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product.
Sales Value atSplit-Off Point
AllocatedJoint Costs
Cost to ProcessFurther
Sales Value ofProcessed Product
Spock
$209,700
$40,000
$109,600
$300,900
Uhura
300,000
60,200
84,900
399,900
Sulu
455,500
79,200
249,500
800,500
Determine the incremental profit or loss that each of the three joint products.
Spock
Uhura
Sulu
Incremental profit (loss)
$
$
$
Indicate whether each of the three joint products should be sold as…
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $178,600 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product.
Sales Value atSplit-Off Point
AllocatedJoint Costs
Cost to ProcessFurther
Sales Value ofProcessed Product
Spock
$209,500
$39,200
$110,100
$300,900
Uhura
299,900
59,100
85,100
400,900
Sulu
454,000
80,300
249,500
800,700
Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Spock
Uhura
Sulu…
Chapter 19 Solutions
Financial And Managerial Accounting
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- Alphabet Soup Inc jointly produces A, B, and C at a joint cost of $100,000. The company uses the production method for byproducts and has estimated that B is a byproduct of manufacturing A and C with an estimated NRV of $6,000. The estimated NRVS of A and C are $80,000 and $80,000, respectively. If Alphabet Soup uses the NRV method in allocating joint costs, what will the cost allocation be? Select one: O a. $49,000 to A, $2,000 to B, and $49,000 to C. O b. $48,000 to A, $2,000 to B, and $48,000 to C. O c. $47,000 to A, $0 to B, and $47,000 to C. O d. $50,000 to A, $0 to B, and $50,000 to C. cross out cross out cross out cross outarrow_forwardGarrison Co. produces three products - X, Y, and Z - from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison's production policy follow. Sales Value at If Processed Further Units Produced Product Split Off Sales Value Additional Costs 40,00 80,00 X 6,000 $ $ $1,200 0 0 15,00 40,00 y 3,000 3,000 0 0 16,00 30,00 Z 1,000 1,500 0 0 The amount of joint costs allocated to product Z using the net realizable value method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):arrow_forwardAnswer the given question with a proper explanation and step-by-step solution. Please help me find an answer.arrow_forward
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