Question: GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 240,000 units of tips having a sales value at the

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 240,000 units of tips having a sales value at the split-off point of $63,000. It produced 240,000 units of stems having a sales value at split-off of $15,750. Using the net realizable value method, the portion of the total joint product costs allocated to tips was $36,000.

Required

Compute the total joint product costs before allocation.

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Since the sales value of each product at the splitoff point is available the appropr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

108-B-C-A-C-A (381).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Punch Limited, a South African, juice making company, purchased 8 new industrial juicing machines to use in the production and manufacturing of juice. The juicers were imported from a supplier in...

Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be...

Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is $2,000 instead of $20,000. Assume also that, because of its...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 220, 000 units of tips having a sales value at the split-off point of $75, 000. It produced 220, 000 units...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 230,000 units of tips having a sales value at the split-off point of $80,500. It produced 230,000 units of...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 270,000 units of tips having a sales value at the split-off point of $69,000. It produced 270,000 units of...

1.Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 260,000 units of tips having a sales value at the split-off point of $100,000. It produced 260,000 units...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 280,000 units of tips having a sales value at the split-off point of $69,000. It produced 280,000 units of...

GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 300,000 units of tips having a sales value at the split-off point of $75,000. It produced 300,000 units of...

(a) Why is it a problem if benefits and costs both occur over several years? (b) Why should the total cost of an incident (TCI) be used in place of exposure factors and asset values? (c) Why is it...

A number of firms have located in the western portion of a town after single-family residences took up the eastern portion. Each firm produces the same product and in the process emits noxious fumes...

Who are some of the players and principals in tourism, and why?

Using Perezs multiple-regression model, what would be the additional sales potential of a Thursday Miami Heat game played during the Christmas holiday?

What are some of the factors that a company needs to consider in addition to cost savings when deciding whether to outsource a service department, such as Information Services?

Surf Beach State College (SBSC) has a business school with three products, undergraduate degrees, graduate degrees, and executive education. SBSC has three service departments, Computer Support,...

This chapter indicated that joint costing is used for inventory valuation and regulatory purposes. Under what conditions might the method of joint cost allocation have an impact on other decisions?

Suppose you want to hedge a $330 million bond portfolio with a duration of 5.5 years using 10-year Treasury note futures with a duration of 7 years, a futures price of 107, and 9 months to...

Can you explain it step by step please

Explain this statement: "It may be better to target one competitor in many countries than many competitors in a few countries." Why is this the case? Explain this statement: "It may be better to...