Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities on the property. Okapuka Farm rears the cattle themselves and each animal slaughtered results in the following products; Fresh Meat which sells for N$25 per kg, some portion of meat is processed into Biltong and the biltong are sold for N$50 per kg, the Hides from the cattle are further processed on the farm and sold to a company that manufacture and sell leather shoes, Shilongo Leather for N$40 each. Horns are also processed further and sold to local Craftsmen for N$800 per pair. Scraps, Hooves and Bones which are donated to the local SPCA (Society for the Prevention of Cruelty to Animals). During October 2021, 250 cattle were slaughtered. Joint costs incurred in the slaughtering process per animal, based on normal capacity (budgeted) of 300 animals, has been summarised as follows: Variable costs, (excluding cost of the animal) at N$1.00 per kg. ● Fixed cost N$108 000 per month. • The cost of the animal is N$2 500, and on average it weighs 300 kg. ● Each animal, on average, yields the following: . A pair of horns weighing 10 kg Biltong meat weighing 70 kg Fresh meat weighing 100 kg ● ● ● ● Hide weighing 40 kg Scraps and bones weighing 80 kg Further processing costs are as follows: Horns Variable costs - Per animal - Per kg N$40 Biltong N$5 Hides N$15 Total N$55 N$5 You are recently hired by Okapuka Tannery and your first task is to allocate the joint costs to the joint products. Except for the scraps, hooves and bones, hides are the only by-product. The NRV of the by- product should be used to reduce the joint cost of the joint products. REQUIRED 3.1 3.2 3.3 3.4 Use the net Realizable value method to allocate joint costs to the products. Use the physical unit method to allocate joint costs to the products. Use the constant gross profit method to allocate joint costs to the products. The management of Okapuka Tannery thinks the sales value method of allocating joint costs is the best method for decision making. Explain whether you agree or disagree with this statement. Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities on the property. Okapuka Farm rears the cattle themselves and each animal slaughtered results in the following products; Fresh Meat which sells for N$25 per kg, some portion of meat is processed into Biltong and the biltong are sold for N$50 per kg, the Hides from the cattle are further processed on the farm and sold to a company that manufacture and sell leather shoes, Shilongo Leather for N$40 each. Horns are also processed further and sold to local Craftsmen for N$800 per pair. Scraps, Hooves and Bones which are donated to the local SPCA (Society for the Prevention of Cruelty to Animals). During October 2021, 250 cattle were slaughtered. Joint costs incurred in the slaughtering process per animal, based on normal capacity (budgeted) of 300 animals, has been summarised as follows: Variable costs, (excluding cost of the animal) at N$1.00 per kg. ● Fixed cost N$108 000 per month. • The cost of the animal is N$2 500, and on average it weighs 300 kg. ● Each animal, on average, yields the following: . A pair of horns weighing 10 kg Biltong meat weighing 70 kg Fresh meat weighing 100 kg ● ● ● ● Hide weighing 40 kg Scraps and bones weighing 80 kg Further processing costs are as follows: Horns Variable costs - Per animal - Per kg N$40 Biltong N$5 Hides N$15 Total N$55 N$5 You are recently hired by Okapuka Tannery and your first task is to allocate the joint costs to the joint products. Except for the scraps, hooves and bones, hides are the only by-product. The NRV of the by- product should be used to reduce the joint cost of the joint products. REQUIRED 3.1 3.2 3.3 3.4 Use the net Realizable value method to allocate joint costs to the products. Use the physical unit method to allocate joint costs to the products. Use the constant gross profit method to allocate joint costs to the products. The management of Okapuka Tannery thinks the sales value method of allocating joint costs is the best method for decision making. Explain whether you agree or disagree with this statement.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these computer network questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the below case and help me with the following question: Identify and prioritize the management accounting issues Full analysis of options and decisions to be made including the status quo...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Malee, who is risk averse, has two pieces of jewelry, each worth $ 1,000. She plans to send them to her sisters firm in Thailand to be sold there. She is concerned about the safety of shipping them....
-
a. What instantaneous release on the ground, in \(\mathrm{g}\), of acrolein will result in a downwind concentration \(1500 \mathrm{~m}\) immediately downwind on the ground equal to \(0.05...
-
Both PM and benefits information systems make provisions for employee access and input. What access would you provide in each of these systems, and what leeway would you provide employees in reading,...
-
Carmon Company invested $300,000 in the equity securities of Mann Corporation. The current market value of Carmons investment in Mann is $250,000. Carmon currently needs funds for operating purposes....
-
How do strategic planners integrate ethical considerations and sustainability imperatives into strategic planning processes, balancing short-term financial objectives with long-term societal and...
-
LUKE'S GENERAL STORE Inventory December 31, 20X7 Price Test Results Proper Action (select one): Test Test Count Item Description Auditor Notes (last purchased Item# Results: price): Boxes appear...
-
Write an essay in which you describe two previous experiences that would make for 4 total items (two past experiences and two goals). (i am very good Christian who believe in Jesus Christ, marry...
-
In the Article: Spencer, L. M. (2000). The economic value of emotional intelligence competencies and EIC-based HR Programs. Is there an economic advantage to becoming an emotionally intelligent...
-
complete these python: json_data={"column...
-
How would liquid contact lenses be helpful and beneficial to student-athletes?
-
Research any top 10 popular advertising agency. make five-paragrapgh presentation to "sell" the agency to a new client.
-
(12 pts) Each part is independent. (a) (7 pts) Lean production does not stop at a company's door. To have a completely lean system, lean companies must have good operational relationships with their...
-
Napigem is a Florida biotech company. They invest some of their assets in stocks, bonds, and mutual funds. The following dashboard helps them manage their investment portfolio. B Bonds 23.48% Mutual...
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
During 2012, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30)........................$21,500 Baking equipment (June 30)...
-
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2012, which he actively manages. During 2012, Walter's share of the...
-
Calculate the amount of the child and dependent care credit allowed for 2012 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla...
-
Identify and briefly describe the purpose and functions of a management system, work process and organization policy.
-
Identify and briefly explain the three levels of strategy and explain their differences.
-
Identify and describe the meaning of the term's formalization and informal.
Study smarter with the SolutionInn App