Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 19, Problem 1TIF
a.
To determine
Identify the actions of the manager as ethical or not, in the situation of not disclosing the facts which doesn’t support her argument.
b.
To determine
Identify the factors to be considered before the allocation of the joint costs.
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Students have asked these similar questions
Scotland Beauty Products (SBP) manufactures face cream, body lotion, and liquid soap in a joint manufacturing process in one manufacturing facility. SBP has three general managers with each one in charge of a separate product line. Michelle Tallerico oversees the face cream line, Becky Borger oversees the body lotion line, and Lorie Osho oversees the liquid soap line. Consider the following performance report for the three general managers and their product lines, where each line is assigned direct costs and allocated support costs and joint costs.
Michelle TallericoFace Cream
Becky BorgerBody Lotion
Lorie OshoLiquid Soap
Actual
Target
Over(Under)Target
Actual
Target
Over(Under)Target
Actual
Target
Over(Under)Target
Direct materials
$104,567
$107,000
$(2,433)
$178,748
$175,000
$3,748
$146,792
$150,000
$(3,208)
Direct labor
238,102
225,000
13,102
280,928
250,000
30,928
234,857
244,000
(9,143)
Allocated support costs
598,342
600,000
(1,658)
598,090
625,000
(26,910)
605,342…
Owe
Joint cost allocation — physical units method
Board-It, Inc., produces the following types of 2 × 4 × 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 50 washed boards, 40 stained boards, and 10 pressure treated boards. The joint production process costs a total of $800 per batch.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet
Using the physical units method, allocate the joint production cost to each product. Round your answers to the nearest cent.
Joint Product
Allocation
Washed
$fill in the blank 2
Stained
fill in the blank 3
Pressure treated
fill in the blank 4
Totals
$fill in the blank 5
Chapter 19 Solutions
Financial And Managerial Accounting
Ch. 19 - Why are support department costs difficult to...Ch. 19 - Why does support department cost allocation matter...Ch. 19 - What are some drawbacks of applying support...Ch. 19 - Why is the diect method of support department cost...Ch. 19 - How does management determine the order in which...Ch. 19 - Are large or small companies more likely to use...Ch. 19 - What is the main difference between the physical...Ch. 19 - When would management most likely use the net...Ch. 19 - What are the two most often used ways of...Ch. 19 - How can support department and joint cost...
Ch. 19 - Charlies Wood Works produces wood products (e.g.,...Ch. 19 - Bucknum Boys, Inc., produces hunting gear for buck...Ch. 19 - Brewster Toymakers Inc. produces toys for...Ch. 19 - Prob. 4BECh. 19 - Garys Grooves Co. produces two types of carving...Ch. 19 - Man OFort Inc. produces two different styles of...Ch. 19 - Yo-Down Inc. produces yogurt. Information related...Ch. 19 - Snowy River Stallion Inc. produces horse and...Ch. 19 - Blue Africa Inc. produces laptops and desktop...Ch. 19 - Christmas Timber, Inc., produces Christmas trees....Ch. 19 - Crystal Scarves Co. produces winter scarves. The...Ch. 19 - Davis Snowflake Co. produces Christmas stockings...Ch. 19 - Becker Tabletops has two support departments...Ch. 19 - Becker Tabletops has two support departments...Ch. 19 - Becker Tabletops has two support departments...Ch. 19 - Support department cost allocation comparison...Ch. 19 - Board-It, Inc., produces the following types of 2 ...Ch. 19 - Prob. 12ECh. 19 - Joint cost allocation market value at split-off...Ch. 19 - Joint cost allocation net realizable value method...Ch. 19 - Big Als Inc. produces and sells various cuts of...Ch. 19 - Gordons Smoothie Stand makes three types of...Ch. 19 - Joint cost allocation-market value at split-off...Ch. 19 - Joint cost allocation net realizable value method...Ch. 19 - Support department cost allocation Blue Mountain...Ch. 19 - Support activity cost allocation Jakes Gems mines...Ch. 19 - Joint cost allocation Lovely Lotion Inc. produces...Ch. 19 - Joint cost allocation Florissas Flowers jointly...Ch. 19 - Support department cost allocation Hooligan...Ch. 19 - Support activity cost allocation Kizzles Crepes...Ch. 19 - Joint cost allocation McKenzies Soap Sensations,...Ch. 19 - Joint cost allocation Rosies Roses produces three...Ch. 19 - Analyze Milkrageous, Inc. Milkragcous, Inc., a...Ch. 19 - Analyze Horsepower Hookup, Inc. Horsepower Hookup,...Ch. 19 - Prob. 3MADCh. 19 - Analyze Williams Ball Jersey Shop Williams Ball ...Ch. 19 - Prob. 1TIFCh. 19 - Prob. 3TIFCh. 19 - Logo Inc. has two data services departments...Ch. 19 - Adam Corporation manufactures computer tables and...Ch. 19 - Breegle Company produces three products (B-40,...Ch. 19 - Tucariz Company processes Duo into two joint...
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