Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5) [The following information applies to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Blondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons. October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 1 Joint Products HTP-3 PST-4 RJ-5 Allocation of Joint Cost HTP-3 27,000 830,000 1,060,000 54,000 5.80 $ PET-4 64,600 415,000 530,000 $1,001,000 7,80 $ Required: 1. Determine Biondi Industries' allocation of joint production costs for the month of October. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.) RJ-S www 4,800 240,000 260,000 $ 84,000 $ 6.80 Required Information Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Blondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to Input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Blondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons HTP-3 PST-4 RJ-5 Additional processing costo Final sales value per gallon HTP-3 27,000 830,000 1,060,000 $1,054,000 5.80 Value of inventory $ PST-4 64,600 415,000 530,000 $1,001,000 7.80 S Problem 17-29 Part 2 2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round Intermediate calculations of "Cost per gallon" to the nearest cent.) RJ-5 4,800 240,000 260,000 $ 84,000 $ 6.00 is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Blondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Blondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 3 HTP-3 27,000 830,000 1,060,000 $1,054,000 5.80 Req 3A $ Complete this question by entering your answers in the tabs below. Req 3B PST-4 64,600 415,000 530,000 $1,001,000 $ 3-a. Suppose Blondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? Roq 3B > RJ-S 4,800 240,000 260,000 $ 84,000 7.80 $ 6.80 Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the peri gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.) Per gallon of process further PST-4 is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing conta Final sales value per gallon Problem 17-29 Part 3 OO Req 3A HTP-) 27,000 830,000 1,060,000 $1,054,000 5.80 $ Complete this question by entering your answers in the tabs below. Req 38 POT-4 $ 3-a. Suppose Blondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? 64,600 415,000 530,000 $1,001,000, 4,800 240,000 260,000 $ 84,000 7.80 $ 6.80 83-5 Should the company sell PST-4 at the split-off point or continue to process this product further? Biondi Industries should sell PST-4 at the split-off point Biondi Industries should process PST-4 further. Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Blondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons. October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 1 Joint Products HTP-3 PST-4 RJ-5 Allocation of Joint Cost HTP-3 27,000 830,000 1,060,000 54,000 5.80 $ PET-4 64,600 415,000 530,000 $1,001,000 7,80 $ Required: 1. Determine Biondi Industries' allocation of joint production costs for the month of October. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.) RJ-S www 4,800 240,000 260,000 $ 84,000 $ 6.80 Required Information Problem 17-29 Joint Costs; Allocation and Production Decisions (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Blondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to Input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Blondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons HTP-3 PST-4 RJ-5 Additional processing costo Final sales value per gallon HTP-3 27,000 830,000 1,060,000 $1,054,000 5.80 Value of inventory $ PST-4 64,600 415,000 530,000 $1,001,000 7.80 S Problem 17-29 Part 2 2. Determine the dollar values of the finished-goods inventories for HTP-3, PST-4, and RJ-5 as of October 31. (Round Intermediate calculations of "Cost per gallon" to the nearest cent.) RJ-5 4,800 240,000 260,000 $ 84,000 $ 6.00 is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Blondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Blondi's operations for the month of October are as follows. During this month, Blondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 3 HTP-3 27,000 830,000 1,060,000 $1,054,000 5.80 Req 3A $ Complete this question by entering your answers in the tabs below. Req 3B PST-4 64,600 415,000 530,000 $1,001,000 $ 3-a. Suppose Blondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? Roq 3B > RJ-S 4,800 240,000 260,000 $ 84,000 7.80 $ 6.80 Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the peri gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.) Per gallon of process further PST-4 is sold to fertilizer manufacturers. Blondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,600,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing conta Final sales value per gallon Problem 17-29 Part 3 OO Req 3A HTP-) 27,000 830,000 1,060,000 $1,054,000 5.80 $ Complete this question by entering your answers in the tabs below. Req 38 POT-4 $ 3-a. Suppose Blondi Industries has a new opportunity to sell PST-4 at the split-off point for $5.60 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? 64,600 415,000 530,000 $1,001,000, 4,800 240,000 260,000 $ 84,000 7.80 $ 6.80 83-5 Should the company sell PST-4 at the split-off point or continue to process this product further? Biondi Industries should sell PST-4 at the split-off point Biondi Industries should process PST-4 further.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP3, a chemical used in hot tubs and swimming pools; PST4, a chemical used in...
-
The following information applies to the questions displayed below Dower Corporation prepares its financial statements according to IFRS On March 31, 2021, the company purchased equipment for...
-
The following information applies to the questions displayed below Juan Diego began the year with a tax basis in his partnership interest of $50,000 During the year, he was allocated $20,000 of...
-
Solve e x+yi = 7.
-
Suppose a safe pain relief medication is available to general public. After many years it is suggested that it has an adverse effects on the nervous system of your children. First, how might you...
-
In Problems 7 14, find the value of each permutation. P(8, 3)
-
A universal coupling is: (a) Rigid coupling (b) Flexible coupling (c) Both (a) and (b) (d) None of these
-
R.E.C. Inc.'s staff of accountants finished preparing the financial statements for 2010 and will meet next week with the company's CEO as well as the Director of Investor Relations and...
-
What are the legal consequences of using corporate assets for personal use? Back it with primary sources like the internal revenue code, internal revenue manual, treasury regulations.
-
Find the absolute maximum and minimum of the function f(x, y) = r* + y* subject to the constraint a + y* = 4096. As usual, ignore unneeded answer blanks, and list points in lexicographic order....
-
Melodys Super Shoe Store. A. Enter the Transactions B. Post the Transactions C. Make a Trial Balance D. Make an Income Statement E. Make a Balance Sheet Transactions : September 1.Melody deposited a...
-
When determining the effect of a transaction on a financial ratio, the steps include Blank . journalize the transaction to see what accounts are affected post the transaction to the unadjusted trial...
-
What goals are used to measure labor and management partnerships?
-
Westdale Burgers purchased a van for $18000 which is subject to a CCA rate of 20%. The company pays a corporate tax rate of 30%. The van is sold for $16000 at the end of the second year. What is the...
-
Coded Bias interviews a dynamic group of scholars and advocates- mostly women of color-the subject of artificial intelligence. What information or interviews stood out to you while watching the film?...
-
Have you tried CAMs? If not, try one! Or discuss one you plan to try. Make sure this differs from any of the other activities we have discussed in other topics. You can see the links for help on what...
-
b. Write the equations of the lines graphed below. Check that your equations are correct. In these problems, assume that dots are on integer coordinates. 10,16 C. sl (20) -4 16 -8 200 -200 4 5 x 8 X...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
Why was Patio Grill Companys management being misled by the traditional product costing system? What mistakes were being made?
-
What does the term safety margin mean?
-
List three nonfinancial measures that could be used to evaluate a division of an insurance company.
-
Following up on question number 3, assume the school conducts a manifestation determination meeting. Tim attends the meeting with his parents. At the meeting, Tim tells the team that smoking helps...
-
Which is an advantage to an employee who participates in a profit-sharing plan? A. Employee does not have to make investment decisions. B. Graded vesting schedule. C. Older employees receive the...
-
Which of the following is not a characteristic of a defined benefit plan? A. A guaranteed retirement benefit. B. Risk of preretirement inflation assumed by employer. C. Benefits based upon the...
Study smarter with the SolutionInn App