Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 19, Problem 4BE
To determine
Compute the amount of joint production costs allocated to each type of shotgun using the physical unit’s method.
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Blake’s Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process that ultimately produces 30 12-gauge shotguns and 20 20-gauge shotguns and costs a total of $4,000 per batch. After the split-off point, each type of shotgun goes through an additional crafting process before it is sold. The additional production process of the 12-gauge shotgun costs $30 per gun, after which it is sold for $180 per gun. The additional production process of the 20-gauge shotgun costs $25 per gun, after which it is sold for $150 per gun. Determine the amount of joint production costs allocated to each type of shotgun using the physical units method.
Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-0. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $150,750 after processing costs of $33,000. A batch of ALT-2 can be sold for $240,300 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch.
Required:
Compute the separable processing cost for a batch of ALT-2.
Note: Do not round intermediate calculations.
Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-O. Both products require
further processing before they be can be sold. A batch of ALT-1 can be sold for $150,000 after processing costs of $30,000. A batch of
ALT-2 can be sold for $240,000 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable
value method, a joint cost of $120,000 was allocated to ALT-2 for a batch.
Required:
Compute the separable processing cost for a batch of ALT-2.
Processing cost
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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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