a. Determine the following amounts for each product (1) estimated net realizable value used for allocating joint
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| a. Determine the following amounts for each product (1) estimated net realizable value used for allocating joint costs. (2) joint costs allocated to each of the three products, (3) cost of goods sold, (4) finished goods inventory costs, September 30th |
| b. Assume that the entire output of Alpha could be processed further at an additional cost of $12 per unit and then sold for $16.30 per unit. What would have been the effect on operating profits if all of Alpha output of the quarter had been further processed and then sold rather than being sold at the split-off point? |
| c. Should Smith Liquids process Alpha further and why? |
| Products | Alpha | Beta | Gamma | |
| Units Sold | 28,000 | 82,600 | 98,000 | |
| Units on hand at September 30 | 70,000 | - | 56,000 | |
| Sales Revenue | $ 126,000 | $ 743,000 | $ 1,029,000 | |
| Departments | 1 | 2 | 3 | |
| Raw material cost | $ 470,400 | $ - | $ - | |
| Direct labor cost | $ 201,600 | $ 339,780 | $ 805,350 | |
| Manufacturing Overhead | $ 84,000 | $ 88,620 | $ 307,650 |
Expert Answer:
ANSWER a Estimated net realizable value used for allocating joint costs Alpha 12600... View the full answer
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