The Happy Wimp Co. is in the business of processing corn into oil, sugar, meal, and...

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The Happy Wimp Co. is in the business of processing corn into oil, sugar, meal, and chaff. Each month the Happy Wimp Co. processes 20,000 pounds. The yields, additional processing costs, and selling prices are: Sales Value at Product Yield Split-off Point Added Costs Oil 200 lbs. $1.25 .50 per lb. Price per lb. $2.00 Sugar 200 lbs. .80 .30 per lb. 1.30 Meal 500 lbs. .40 .20 per lb. .60 Chaff 100 lbs. .10 0 .10 Joint processing costs per 1,000 pounds are: raw materials $100, labor $80, and depreciation $4,000/20 = $200; Total $380. Required: a.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a main product. b.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a by-product. The Happy Wimp Co. is in the business of processing corn into oil, sugar, meal, and chaff. Each month the Happy Wimp Co. processes 20,000 pounds. The yields, additional processing costs, and selling prices are: Sales Value at Product Yield Split-off Point Added Costs Oil 200 lbs. $1.25 .50 per lb. Price per lb. $2.00 Sugar 200 lbs. .80 .30 per lb. 1.30 Meal 500 lbs. .40 .20 per lb. .60 Chaff 100 lbs. .10 0 .10 Joint processing costs per 1,000 pounds are: raw materials $100, labor $80, and depreciation $4,000/20 = $200; Total $380. Required: a.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a main product. b.) Allocate the total joint costs to the different products according to the four allocation methods. Treat chaff as a by-product.

Answer rating: 100% (QA)

Answer a Allocation of joint costs when chaff is treated as a main product 1 Physical Units Method Total joint costs 380 Total pounds processed 20000 ... View the full answer