A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,800. None of the products can be sold at split-off, but must processed further. Information on one batch of the three products is as follows: Product L-Ten Grades L-Ten Triol Gallons 3,300 3,800 2,500 Triol Pioze Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the alloca costs to the nearest dollar. Pinze Further Processing Cost per Gallon $0.40 0.90 1.40 Joint Cost Eventual Market Price per Gallon $2.20 Allocation 4.90 6.30

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,800. None of the products can be sold at split-off, but must processed further. Information on one batch of the three products is as follows: Product L-Ten Grades L-Ten Triol Gallons 3,300 3,800 2,500 Triol Pioze Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the alloca costs to the nearest dollar. Pinze Further Processing Cost per Gallon $0.40 0.90 1.40 Joint Cost Eventual Market Price per Gallon $2.20 Allocation 4.90 6.30

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...

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