1. Lamar Company produces only two products and incurs joint processing costs totaling $3,750. Alpha and Beta...
Question:
1. Lamar Company produces only two products and incurs joint processing costs totaling $3,750. Alpha and Beta products are produced in the following quantities each month: 4,500 and 6,000 gallons, respectively.
Lamar Company also runs an ad each month advertising both products at a cost of $1,500. The selling price per gallon of the two products is $20 and $17.50, respectively.
1.What amount of co-processing costs is assigned to each product based on gallons produced?
2.What amount of advertising cost is assigned to each product based on the sales value?
2. Moore Company produces three products from the same process and incurs joint processing costs of $3,000. Disposal costs for the products if processed further are: M, $3.00; N, $5.50; Q, $1.00.
Required:
What amount of joint processing cost is allocated to the three products using the sales value in the division?
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso