Question: Webster Company produces 20,000 units of product A, 15,000 units of product B, and 18,500 units of product C from the same manufacturing process at

Webster Company produces 20,000 units of product A, 15,000 units of product B, and 18,500 units of product C from the same manufacturing process at a cost of $425,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $30 for B, and $2 for C. None of the products require separable processing. Of the units produced, Webster Company sells 13,000 units of A, 14,000 units of B, and 18,500 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory.

Required

1. What is the value of the ending inventory of product A?

Ending inventory

2. What is the value of the ending inventory of product B?

Ending inventory?

Step by Step Solution

★★★★★

3.44 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To solve this problem we need to allocate joint costs using the net realizable value NRV method and calculate the ending inventory values for products ... 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 (2 attachments)

6095b02805d7a_26138.pdf

180 KBs PDF File

6095b02805d7a_26138.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A manufacturing company produces 80,000 units of product A at a total cost of $2.4 million. Total fixed costs are $1.4 million. If the company increases production by 25% and uses a 19% markup the...

A manufacturing company produces 80,000 units of product A at a total cost of 52.4 million. Total fixed costs are 51.4 million. If the company increases production by 25% and uses a 40% markup, the...

Assume that Corn Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $30 and $60 respectively. Corn has fixed...

Webster Company produces 30,000 units of product A, 24,000 units of product B, and 16,000 units of product C from the same manufacturing process at a cost of $400,000. Webster Company produces 30,...

Webster Company produces 35,000 units of product A, 30,000 units of product B, and 19,000 units of product C from the same manufacturing process at a cost of $430,000. A and B are joint products, and...

Item Item 3 Webster Company produces 3 2 , 0 0 0 units of product A , 2 7 , 0 0 0 units of product B , and 1 4 , 0 0 0 units of product C from the same manufacturing process at a cost of $ 3 8 0 , 0...

Montonya Company has the following selected data for the current year: Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed...

PLEASE VERIFY IF I DID THIS CORRECTLY! Webster Company produces 25,000 units of product A,15,000 units of product B, and 17,500 units of product C from the same manufacturing process at a cost of...

Silverman Company produces 20,000 units of A, 20,000 units of B, and 10,000 units of product C from the same manufacturing process at a cost of $340,000. A and B are joint products, and C is regarded...

Knowledge Check: Purchase Transactions On May 10, Stark Co. buys $800 of merchandise on account from Hong Supply, terms 3/10, n/30. On May 12, Stark returns defective goods with a selling price of...

describe what the Death with Dignity Act is, What are three of the most important rules concerning who is eligible for physician-assisted dying? What are the main reasons some people support Death...

THE FORUMIY mon applies to be a you Now. Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 232...

The trial balance of Racer Internet Ltd as at 30 June 2021 is as follows: Cash at Bank Accounts Receivable Prepaid Rent Supplies Equipment Debit ($) Credit ($) 4300 15100 2000 200 20600 Accumulated...

I need help with answering this problem, thank you! I. Use the situations to answer the problem. 1. Maria's house is located at the center of the village in circular form. The endpoints of an...

Shown in the figure below is a re-creation of the Rutherford experiment. The "target" (green) nucleus is Platinum and has a charge of Q = 1.25e-17 Coulombs and a large mass. You fire a Lithium...

- 3 Week 3 invertory Concept and Deprec aton Methods Template Read-Dely- Saved to this PC able Toals Ms. Trent Tell me what you want to de File Inret Deww Decign Refesences Maiinzs Beview view...

Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...

In 2020, Kanyiti ltd started a sporting equipment business with GHC7000 from personal savings which he lodged into a bank account for the business. The following transactions took place during the...

Consider the following balance sheet and income statement for Yum! Brands, Inc. (the company that operates Kentucky Fried Chicken and Pizza Hut), in condensed form, including some information from...

Assume that the Mendoza Company is considering the replacement of a current machine, which has been used for the past three years in the operations of the business. The anticipated purchase date for...

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of $10.80 per unit while...

Indicate the effect-Understate, Overstate, No Effect-that each of the following errors has on 2018 net income and 2019 net income.

Tedesco Company changed depreciation methods in 2019 from double-declining-balance to straight-line. Depreciation prior to 2019 under double-declining-balance was $90,000, whereas straight-line...

Sesame plc purchased a computer system for 74,000 on January 1, 2017. It was depreciated based on a 7-year life and an 18,000 residual value. On January 1, 2019, Sesame revised these estimates to a...