As a start-up company, Marigold Enterprises encourages its employees to think through the entire value chain...

 

Transcribed Image Text:

As a start-up company, Marigold Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Barbara is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very high- value product. Barbara is intrigued enough to dig further into her intern's quantitative analysis, as follows. Sales value of X immediately after the joint process Sales value of Y after further processing Product X's share of the joint process cost Proportion of joint cost allocated to Product Y (a) Your answer is correct. $53,550 $395,000 $21,420 Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint costs to these products. The intern must have used the Net Realizable Value Method eTextbook and Media 88.1% method. Assistance Used Attempts: 1 of 3 used As a start-up company, Marigold Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Barbara is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very high- value product. Barbara is intrigued enough to dig further into her intern's quantitative analysis, as follows. Sales value of X immediately after the joint process Sales value of Y after further processing Product X's share of the joint process cost Proportion of joint cost allocated to Product Y (a) Your answer is correct. $53,550 $395,000 $21,420 Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint costs to these products. The intern must have used the Net Realizable Value Method eTextbook and Media 88.1% method. Assistance Used Attempts: 1 of 3 used

Answer rating: 100% (QA)

The intern must have used the Relative Sales Value Method or the Net Real... View the full answer