In a joint process, Wear Art produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of relative sales value at split-off. The company can choose to process each of the products further rather than sell the fabric at split-off. Information related to these products follows.

a. What amount of joint cost should be allocated to dresses and blouses?
b. What is the sales values at the split-off point for dresses?
c. Should any of the products be processed beyond the split-off point? Show computations.
d. If 12,000 jackets are processed further and sold at the regular selling price, what is the gross profit on thesale?

  • CreatedJune 03, 2014
  • Files Included
Post your question