Corey Corporation manufactures joint products Wand X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: Separable processing costs Sales price (per gallon) if processed beyond split-off The joint cost allocated to W under the net-realizable-value method would be: (Do not round intermediate calculations.) Multiple Choice $156,000. $142,105 $110,000 $128.571. $40,000 $ 15 $ $160,000 13

Corey Corporation manufactures joint products Wand X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: Separable processing costs Sales price (per gallon) if processed beyond split-off The joint cost allocated to W under the net-realizable-value method would be: (Do not round intermediate calculations.) Multiple Choice $156,000. $142,105 $110,000 $128.571. $40,000 $ 15 $ $160,000 13

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $320,000 in the production of 25,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: W X Separable processing costs $ 45,000 $ 150,000 Sales price (per gallon) if processed beyond split-off $ 15 $ 13 What would be the joint cost allocated to X under the net-realizable-value method ? Note: Do not round intermediate calculations.
Bixel Components manufactures products A1 and A2 from a joint process. Total joint costs are $360,000. The sales value at split-off was $400,000 for 4,500 units of product A1 and $200,000 for 1,400 units of product A2. Required: Assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product A1? (Do not round intermediate calculations.) Joint cost of product A1
A company manufactures products X and Y using a joint process. The joint processing costs are P10,000. Products X and Y can be sold at split-off for P12,000 and P8,000 respectively. After split-off, product X is processed further at a cost of P5,000 and sold for P21,000 whereas product Y is sold without further processing. If the company uses the net realizable value method for allocating joint costs, the joint cost allocated to X is
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $169,000. The sales value at split- off was $175,680 for 8.800 units of Kappa and $63,280 for 13,200 units of Lambda. Required: a. What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. b. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations. a. Net realizable value method b. Physical quantities method Kappa Lambda
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $158,000. The sales value at split-off was $167,760 for 4,400 units of Kappa and $63,280 for 6,600 units of Lambda. Required: What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations.
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $168,000. The sales value at split-off was $174,960 for 8,400 units of Kappa and $63,280 for 12,600 units of Lambda. Required: What joint costs are allocated to the two products using the net realizable value at split-off approach? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. What joint costs are allocated to the two products using the physical quantities method? Note: Do not round intermediate calculations. Kappa Lambda a. Net realizable value method ??? ??? b. Physical quantities method ??? ???
Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $81,000. Sales values and costs were as follows: Product Units Made Sales Price at Split-Off If Processed Further Sales Value Separable Cost X 12,000 $ 43,000 $ 81,000 $ 10,500 Y 4,000 86,000 96,000 7,500 If the joint production costs are allocated based on the relative-sales-value method, what woukd be the amount of joint cost assigned to product X ?
Backer Company manufactures products Katran and Klare from a joint process. Product Katran has been allocated P7,500 of total joint costs of P30,000 for the 1,500 units produced. Katran can be sold at the splitoff point for P4 per unit, or it can be processed further with additional costs of P2,000 and sold for P7 per unit. If Katran is processed further and sold, the result would be A. a gain of P1,000 from further processing. B. a loss of P2,500 from further processing C. an overall loss of P1,500 D. a gain of P2,500 from further processing
The Freed Company produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for total revenues of $50,000, or it can be processed further at a total cost of $16,000 and then sold for $68,000. Product Y: А. Should be sold at the split-off point, rather than processed further. В. Would increase the company's overall net operating income by $18,000 if processed further and then sold. С. Would increase the company's overall net operating income by $68,000 if processed further and then sold. D. Would increase the company's overall net operating income by $2,000 if processed further and then sold. Е. None of the above
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 4,300 gallons of product A and 1,400 gallons of product B to the split-off point costs $5,200. The sales value at split-off is $3.00 per gallon for product A and $21.50 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.80 per gallon before it can be sold at a price of $34 per gallon. Required: What is the company’s cost to produce 1,400 gallons of product B? Question 2. Webster Company produces 30,000 units of product A, 25,000 units of product B, and 16,500 units of product C from the same manufacturing process at a cost of $405,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $25 for A, $10 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster…
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $12. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the cost-based transfer price? Variable cost per unit $7.48 • Fixed cost per unit 1.97 • Division B sales price of Component X 14.50
Karen Corp. manufactures products Y and Z from a joint process. The sales value at split-off was P50,000 for 6,000 units of Product Y and P25,000 for 2,000 units of Product Z. Assuming that the portion of the total joint costs properly allocated to Product Y using the relative sales value at split off approach was P30,000. What were the total joint costs?