Products X and Y are ready for sale immediately upon splitoff without further processing or any...
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Products X and Y are ready for sale immediately upon splitoff without further processing or any other additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point. X- 80 tons sold for $2,000 per ton 180 tons sold for $1,500 per ton Z-368 tons sold for $1,000 per ton The total joint manufacturing costs for the year were $400,000. Takita spent an additional $250,000 to finish product Z. There were no beginning inventories Y, or Z. At the end of the year, the following inventories of completed units were on hand: X, 120 tons; Y, 120 tons; Z, 32 tons. There was no beginning or ending work in process. X, 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2020, using the following joint-cost-allocation methods: a. NRV method b. Constant gross-margin percentage NRV method 2. Compare the gross-margin percentages for X. Y, and Z using the two methods given in requirement 1. Products X and Y are ready for sale immediately upon splitoff without further processing or any other additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point. X- 80 tons sold for $2,000 per ton 180 tons sold for $1,500 per ton Z-368 tons sold for $1,000 per ton The total joint manufacturing costs for the year were $400,000. Takita spent an additional $250,000 to finish product Z. There were no beginning inventories Y, or Z. At the end of the year, the following inventories of completed units were on hand: X, 120 tons; Y, 120 tons; Z, 32 tons. There was no beginning or ending work in process. X, 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2020, using the following joint-cost-allocation methods: a. NRV method b. Constant gross-margin percentage NRV method 2. Compare the gross-margin percentages for X. Y, and Z using the two methods given in requirement 1.
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Jointcost allocation using Net realizable value NRV method Determine Total production for the year 2... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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