Now let's assume that Sunny Morming Soap Company can sell the regular soap at the split-on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Now let's assume that Sunny Morming Soap Company can sell the regular soap at the split-on point, but the extra-moisturizing soạp must be processed further before being sold. Regular soup sells for $0.75 per bar at the split-off point. Although the extra-moisturizing soap requires additional processing to be sold, Sunny Morning's management estimates a market value of $1.25 per bar at the split-off point. ©) Calculate the joint production cost to be allocated to bars of soap using the market value at split off method. *Round to the nearest whole percent if necessary. Sellis Allocotion S Harket Jant at Per vale cst O 70% 1% Regdas 0,75 క 50 or Soay 1. 25 a5 60 O.9 % 14.5 2000 Say 645 But the Controller came to us and asked about the additional costs for processing further. We know the following (note: a batch is the full 8,000 and 2,000 bars of soap as shown above). Joint cot 5oro Additional Split-Off Point Processing Costs $2,500 per batch $3,000 per batch Selling Price After Further Processing $1.50 2.00 Selling Price at Regular soap Extra-moisturizing soap $0.75 1.25 d) Calculate the joint production cost to be allocated to bars of soap using the net realizable value method. "Round to the nearest whole percent if necessary. we Now let's assume that Sunny Morming Soap Company can sell the regular soap at the split-on point, but the extra-moisturizing soạp must be processed further before being sold. Regular soup sells for $0.75 per bar at the split-off point. Although the extra-moisturizing soap requires additional processing to be sold, Sunny Morning's management estimates a market value of $1.25 per bar at the split-off point. ©) Calculate the joint production cost to be allocated to bars of soap using the market value at split off method. *Round to the nearest whole percent if necessary. Sellis Allocotion S Harket Jant at Per vale cst O 70% 1% Regdas 0,75 క 50 or Soay 1. 25 a5 60 O.9 % 14.5 2000 Say 645 But the Controller came to us and asked about the additional costs for processing further. We know the following (note: a batch is the full 8,000 and 2,000 bars of soap as shown above). Joint cot 5oro Additional Split-Off Point Processing Costs $2,500 per batch $3,000 per batch Selling Price After Further Processing $1.50 2.00 Selling Price at Regular soap Extra-moisturizing soap $0.75 1.25 d) Calculate the joint production cost to be allocated to bars of soap using the net realizable value method. "Round to the nearest whole percent if necessary. we
Expert Answer:
Answer rating: 100% (QA)
1 Selling Price Market Value Allocated Joint Cost Production Allocation Item Per Unit at Units s... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
Assume you own a bond with a market value of $ 820 that matures in 7 years. The par value of the bond is $ 1,000. Interest payments of $ 30 are paid semiannually. What is your expected rate of return...
-
A company has assets with a market value of $100. It has one outstanding bond issue, a zero coupon bond maturing in two years with a face value of $75. The risk-free rate is 5 percent. The volatility...
-
Which one of these statements is correct regarding U.S. firms during the period 1995-2012? A. Firms have rarely relied on debt financing. B. Internal funds have provided less than half of the firms...
-
Solve Problem using augmented matrix methods. Use a graphing calculator to perform the row operations 5.7x1 - 8.55x2 = -35.91 4.5x1 +5.73x2 = 76.17
-
Suppose you have been engaged to value a retail clothing chain as of December 31, 2012. You have selected the capitalization of earnings method and determined that net cash flow is the appropriate...
-
Evaluate each expression if possible. -V0.49
-
Water flows through the orifice meter shown in Fig P8.122 such that \(h=1.6 \mathrm{ft}\) with \(d=1.5 \mathrm{in}\). Determine the flowrate. Fig P8.122 0- 2 in. h
-
Information regarding Carperk Companys individual investments in securities during its calendar- year 2013, along with the December 31, 2013, fair values, follows. a. Investment in Brava Company...
-
LJS Co. faces increasing needs for capital Fortunately it has an AA credit rating. The corporate tax rate is 40 percent The firm's financial manager is trying to determine the firm's current (2018)...
-
Majer Corporation manufactures a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard cost per unit Direct materials 6.1 ounces ps 2.00 per ounce ps...
-
Question 25 Let A=B+2C, B and C are statistically independent random variables with the following details: Not yet E[B]=5, EIC]= 3 answered Marked out of E[B*1=30, E[C1= 20 1.00 P Flag question the...
-
In addition to financial compensation, what other variables can play a role in compensation that an IHRM can leverage in emerging markets? Provide examples from different cultures.
-
In a study of the effects of commercial fishing on fish populations, Hsieh et al. (2006) measured the year-to-year coefficient of variation (CV) of larval population sizes of exploited and...
-
Please watch the following video(s): 1. Six barriers to becoming a high-performance organization: https://youtu.be/L6zPYdpOqL8 2. Fit to compete:...
-
Imagine that you are to prepare a repatriation plan for a manager returning home to your country following the completion of a foreign assignment. What points should you consider in order to avoid...
-
Why is a globally experienced management cadre considered an essential ingredient for global competitiveness?
-
Please use the following information for the questions thatfollow:At December 31, 2018, the accounting records of Gordon, Inc.contain the following items:Accounts Payable $2,500 Accounts receivabl 2...
-
Difference between truncate & delete
-
Jones Company has adopted a traditional share option plan for its officers and other employees. This plan is properly considered a compensatory plan. Required Explain how this plan will affect...
-
After extended negotiations, Rothman Corporation bought from Felzar Company most of the latters assets on June 30, 2007. At the time of the sale, Felzars accounts (adjusted to June 30, 2007)...
-
On January 1, 2004 Grover Company changed its inventory cost flow method to the LIFO cost method from the FIFO cost method for its raw materials inventory. It made the change for both financial...
-
A system with a damping ratio of 1.2 is overdamped. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
-
An undamped SDOF system has free vibrations which are periodic. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
-
The free vibrations of an overdamped SDOF system are cyclic. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
Study smarter with the SolutionInn App