Carol is looking back at her work from last year, when she allocated the company's key process costs to its three products She knows that the company has historically used the NRV method joint costs Unfortunately, the printout that she has of the final allocations and supporting detail is only partially legible You see, Steven accidentally set the sprinklers off in the office last week, and Carol's printout was recipient of most of that water Here is a replication of what she could see from the printout she noted missing information with lowercase roman numerals Ah Bay Say Total Units produced (available) at split off point 380 190 380 950 Sales value per unit at split off point $8 $6 $4 (v) Units produced (available) after further processing (i) 325 380 (vi) Final sales value per unit after further processing $12 (iii) $10 (vii) Further processing costs $2,800 $600 (iv) $4,200 Allocated joint costs (ii) $940 $1,410 $4,700 (a) Fill in the missing details for each product Ah Bay Say Total Units produced (available) at split off point 380 190 380 950 Sales value per unit at split off point $8 $6 $4 $6 Units produced (available) after further processing 650 325 380 1,355 Final sales value per unit after further processing $12 $8 $10 $30 Further processing costs $2,800 $600 $800 $4,200 Allocated joint costs $2,350 $940 $1,410 $4,700 (b) If Carol's company had instead used the physical quantities method for allocating joint costs, how different would the allocated costs have been for each product Ah Bay Say Difference in allocated joint cost $470 $0 $(470) (c1) Under the existing NRV method, which product has the highest gross margin percentage assuming all quantities available after further processing are sold for the given price Ah Bay Say Gross margin ration Product has the highest gross margin percentage If the physical quantities methos is used, which product has the highest gross margin percentage (again, assuming all quantities available are sold for the given price after further processing) Ah Bay Say Gross margin ration Product has the highest gross margin percentage

The Answer is in the image, click to view ...

Question: Carol is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that

Carol is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV method joint costs. Unfortunately, the printout that she has of the final allocations and supporting detail is only partially legible. You see, Steven accidentally set the sprinklers off in the office last week, and Carol's printout was recipient of most of that water. Here is a replication of what she could see from the printout; she noted missing information with lowercase roman numerals.

	Ah	Bay	Say	Total
Units produced (available) at split-off point	380	190	380	950
Sales value per unit at split-off point	$8	$6	$4	(v)
Units produced (available) after further processing	(i)	325	380	(vi)
Final sales value per unit after further processing	$12	(iii)	$10	(vii)
Further processing costs	$2,800	$600	(iv)	$4,200
Allocated joint costs	(ii)	$940	$1,410	$4,700

(a) Fill in the missing details for each product.

	Ah	Bay	Say	Total
Units produced (available) at split-off point	380	190	380	950
Sales value per unit at split-off point	$8	$6	$4	$6
Units produced (available) after further processing	650	325	380	1,355
Final sales value per unit after further processing	$12	$8	$10	$30
Further processing costs	$2,800	$600	$800	$4,200
Allocated joint costs	$2,350	$940	$1,410	$4,700

(b) If Carol's company had instead used the physical quantities method for allocating joint costs, how different would the allocated costs have been for each product?

	Ah	Bay	Say
Difference in allocated joint cost	$470	$0	$(470)

(c1) Under the existing NRV method, which product has the highest gross margin percentage assuming all quantities available after further processing are sold for the given price?

	Ah	Bay	Say
Gross margin ration	%	%	%

Product has the highest gross margin percentage.

If the physical quantities methos is used, which product has the highest gross margin percentage (again, assuming all quantities available are sold for the given price after further processing)?

	Ah	Bay	Say
Gross margin ration	%	%	%

Product has the highest gross margin percentage.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Please help! Carol is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV...

Lisa is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV method to allocate...

Jennifer is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV method to...

Barbara is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV method to...

Mary is looking back at her work from last year, when she allocated the company s key process costs to its three products. She knows that the company has historically used the NRV method to allocate...

Part (B) Sandra is looking back at her work from last year, when she allocated the company's key process costs to its three products. She knows that the company has historically used the NRV method...

Under the existing NRV method, which product has the highest gross margin percentage assuming all quantities available after further processing are sold for the given price? ( Round answers to 2...

Discuss the strategies available to market leaders.

Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following allocation bases in the three companies: Required:...

8. Which of the following is false? a. The order of the arguments listed in the Call statement should agree with the order of the parameters listed in the receiving procedures header. b. The data...

In a car with rear-wheel drive, the maximum acceleration is often less than the maximum deceleration. Why?

Ultima Company offers its customers discounts to purchase goods and take title before they actually need the goods. The company offers to hold the goods for the customers until they request delivery...

You have been hired to help improve the material movement system at a manufacturing plant. Boxes containing 22 kg of tomato sauce in glass jars must slide from rest down a frictionless roller ramp to...

Indicate with an "X" in which columns, Income Statement Debit or Credit or Balance Sheet Debit or Credit, a net income or a net loss would appear on a worksheet. Balance Sheet Debit Credit Income...

Indicate with an "X" whether each account total should be extended to the Income Statement Debit or Credit or to the Balance Sheet Debit or Credit columns on the worksheet. Income Statement Debit...

Can we put that she will be making weekly payroll deductions inthe amount of $52.75 to the housing equalling $211.00 monthly

A service is rented rather than owned. Explain what this statement means, and use examples to support your explanation.

Why is periodic service process redesign necessary? What are the typical symptoms that indicate a service process is not working well?

What are the key factors driving the place and time decisions of service distribution?

Consider a tax on cigarettes. Do you expect the tax incidence to fall more heavily on buyers or sellers of cigarettes? Why?

Suppose the government imposes a price ceiling on gasoline. One month after the price ceiling, there is a shortage of gasoline, but it is much smaller than critics of the policy had warned. Explain...

Suppose there has been a long-standing price ceiling on housing in your city. Recently, population has declined, and demand for housing has decreased. What will the decrease in demand do to the...