Project Description:

identify joint costs in complex process, income statement, by-product, opportunity cost:goodman and sons manufactures a number of joint products. the process begins in department 1 with 100,000 lbs , of which 30% goes to department 2, 60% goes to department 3, and the remainder is waste. from department 2, five-sixths goes to department 4 and one-sixth goes to department 5.
there is no market for intermediate products; only the end products of department 3 (a by-product), department 4 (a main product), and department 5 ( a main product) are sold. goodman uses the net realizable value method to allocate joint costs, and the by-product value is recognized at the time of sale. cost and sales data are as follows:

department costs sales product
1 $10,000
2 $10,000
3 $2,000 $10,000 c
4 $25,000 $40,000 a
5 $5,000 $6,000 b

a. in this problem, the joint costs results from a number of different processes. what are the joint costs for products a and b (the two main products)?
b. what are the joint cost allocations for products a and b?
c. develop an income statement for goodman and sons.
d. what opportunity cost could be assigned to product b for purposes of determining whether it should be processed further
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Price Type: Negotiable

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