Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $8030. O $3290. $2030. Units Produced in lbs O $0. 24800 13100 3290 Units Sold in lbs 20500 11100 2030 Sale Price per lb $1.30 6.20 How much in joint costs should be allocated to the by-product, using the production method? 1.00

Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $8030. O $3290. $2030. Units Produced in lbs O $0. 24800 13100 3290 Units Sold in lbs 20500 11100 2030 Sale Price per lb $1.30 6.20 How much in joint costs should be allocated to the by-product, using the production method? 1.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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