Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 19, Problem 4CMA
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for $2.000.
- a. $500.
- b. $4,000.
- c. $1,000.
- d. $4,500.
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Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchase in 1,000-gallon drums for $2,000. Processing costs are $3,000 to process the 1,000 gallons of Duo into 800 gallons of Big and
200 gallons of Mini. The selling price is $9 per gallon for Big and $4 per gallon for Mini. If the sales value at split-off method is used to allocate joint costs to the final products, the per-gallon cost (rounded to the
nearest cent) of producing Big is
Select one:
a. $5.00 per gallon.
b. $5.63 per gallon.
c. $4.50 per gallon. X
d. $3.38 per gallon.
Chemical Corporation produces liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative sales
value at split-off. It costs $4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market
value at split-off is $10 per gallon for Product A and $14 for Product B. Product B requires an additional process beyond split-off at a
cost of $2 per gallon before it can be sold. What is Chemical's cost to produce 1,000 gallons of Product B?
Choose...
Choose...
$4,860
$5,360
$3,360
$5,040
Joint Products Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,000 gallons of productA and 1,000 gallons of product B to the split-off point costs $5,600. The sales value at split-off is $2per gallon for product A and $30 per gallon for product B. Product B requires additional separableprocessing beyond the split-off point at a cost of $2.50 per gallon before it can be sold at a price of$34 per gallon.Required What is the company’s cost to produce 1,000 gallons of product B?
Chapter 19 Solutions
Financial And Managerial Accounting
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