Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol,...
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Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,600. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product L-Ten Triol Pioze Grades L-Ten Triol Gallons Pioze 3,100 3,600 2,300 Further Processing Cost per Gallon $0.70 1.10 1.50 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 allocated costs to the nearest dollar. Joint Cost Eventual Market Price per Gallon $2.50 Allocation 4.90 6.30 Total 2. What if it cost $2.10 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar.. Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,600. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product L-Ten Triol Pioze Grades L-Ten Triol Gallons Pioze 3,100 3,600 2,300 Further Processing Cost per Gallon $0.70 1.10 1.50 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 allocated costs to the nearest dollar. Joint Cost Eventual Market Price per Gallon $2.50 Allocation 4.90 6.30 Total 2. What if it cost $2.10 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar..
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Allocate the joint cost to LTen Triol and Pioze using the net realizable value method NRV for LTen Price per Gallon ... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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