Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Requirement 1: Allocated cost of sold items

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Answer 1

Question

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

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Financial Accounting

In September, one of the processing departments at Shenkel corporation had a beginning work-in-process inventory of $25,000 and an ending work-in-process inventory of $21,000. During the month, the cost of units transferred out from the department was $304,000. In the department's cost reconciliation report for September, the total cost accounted for would be:

Can you please provide solution this general accounting question?

Answer 2

Question

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

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Answer 3

Question

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

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Answer 4

Question

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

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Answer 5

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

Answer 6

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

Answer 7

Chapter 24, Problem 22E

To determine

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

Answer 8

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of Lobster Tail = $8631

Allocated cost of Lobster Flakes = $1701

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Allocated cost to sold items = Units Sold x Cost per pound

$\begin{array}{l} L o b s t e r T a i l = $ 7.875 x 1096 = $ 8631 \\ L o b s t e r F l a k e s = $ 5.25 x 324 = $ 1701 \end{array}$

Answer 13

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

Answer 14

To determine

To Calculate:

Requirement 2: Allocated cost of ending inventory

Answer 15

Expert Solution

Answer to Problem 22E

Solution:

Allocated cost of ending inventory of Lobster Tail = $1197

Allocated cost of ending inventory of Lobster Flakes = $1071

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Ending Inventory = Purchased – Sold

$\begin{array}{l} E n d i n g I n v e n t o r y o f L o b s t e r T a i l = (52 x 24) - 1096 = 152 p o u n d s \\ E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = (22 x 24) - 324 = 204 p o u n d s \end{array}$

Cost of ending inventory = Ending Inventory x Cost per pound

$\begin{array}{l} C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r T a i l = 152 x 7.875 = $ 1197 \\ C o s t o f E n d i n g I n v e n t o r y o f L o b s t e r F l a k e s = 204 x 5.25 = $ 1071 \end{array}$

Total or Joint Cost

$\begin{array}{l} T o t a l C o s t = P u r c h a s i n g c o s t + P r o c e s s i n g C o s t \\ = (2400 x 4.50) + 1800 \\ = $ 12, 600 \end{array}$

Market Value

$\begin{array}{l} M V o f l o b s t e r t a i l = 52 x 24 x 21 = $ 26208 \\ M V o f l o b s t e r f l a k e s = 22 x 24 x 14 = $ 7392 \\ T o t a l M a r k e t V a l u e = 26208 + 7392 = $ 33600 \end{array}$

Percentage of Market Value

$\begin{array}{l} L o b s t e r t a i l = 26208 / 33600 = 78 % \\ L o b s t e r f l a k e s = 7392 / 33600 = 22 % \end{array}$

Allocation of Joint Cost

$\begin{array}{l} L o b s t e r t a i l = 78 % o f 12600 = $ 9828 \\ L o b s t e r f l a k e s = 22 % o f 12600 = $ 2772 \end{array}$

Cost per Pound

$\begin{array}{l} L o b s t e r T a i l = 9828 / 1248 = $ 7.875 \\ L o b s t e r F l a k e s = 2772 / 528 = $ 5.25 \end{array}$

Answer 20

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - _________costs are not within the manager’s...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Requirement 1: Allocated cost of sold items

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis. To Calculate: Requirement 1: Allocated cost of sold items

Answer to Problem 22E

Explanation of Solution

To Calculate: Requirement 2: Allocated cost of ending inventory

Answer to Problem 22E

Explanation of Solution

Want to see more full solutions like this?

Chapter 24 Solutions

Introduction: Joint costs are the costs that benefit more than one product or process in the manufacturing process. The joint cost can be allocated either on physical basis or on value basis.

To Calculate:

Requirement 1: Allocated cost of sold items

To Calculate:

Requirement 2: Allocated cost of ending inventory