Company C Itd buys gelqere to paperpuma. Processing the gel results in 4 products at the...

 

Transcribed Image Text:

Company C Itd buys gelqere to paperpuma. Processing the gel results in 4 products at the separation point W, X, Y and Z. Product Y is completely processed at the separation point. Products. W.X and Z can each be further processed into W', X' and Z. Last month (April), production at the break-even point was Products W. 350,000 kg Produkti X. 115,000 kg Product Y. 65,500 kg Productiz. 55,500kg The combined costs of buying and processing the raw lime were $175,000. C Itd has no beginning and ending inventory. Sales of Product Y in April were $75,500. Products W, X and Z were further processed and then sold. The data related to April are as follows IN X' Special processing costs to realize W, X' and Z 230,000 $ 95,000$ 110,000$ 400,000$ 150,000$ 180,000 Income C Itd had the alternative of selling products W, X and Z. at the split point. it alternative could have produced the following revenue for April's production: Products W: $72,000 Products X: $40,000 Produkti Z: $30,000 Required: Allocate the joint costs of $175,000 to each of the products by USING the following methods: a. The value of sales at the split point b. Physical measurement C. NRV Company C Itd buys gelqere to paperpuma. Processing the gel results in 4 products at the separation point W, X, Y and Z. Product Y is completely processed at the separation point. Products. W.X and Z can each be further processed into W', X' and Z. Last month (April), production at the break-even point was Products W. 350,000 kg Produkti X. 115,000 kg Product Y. 65,500 kg Productiz. 55,500kg The combined costs of buying and processing the raw lime were $175,000. C Itd has no beginning and ending inventory. Sales of Product Y in April were $75,500. Products W, X and Z were further processed and then sold. The data related to April are as follows IN X' Special processing costs to realize W, X' and Z 230,000 $ 95,000$ 110,000$ 400,000$ 150,000$ 180,000 Income C Itd had the alternative of selling products W, X and Z. at the split point. it alternative could have produced the following revenue for April's production: Products W: $72,000 Products X: $40,000 Produkti Z: $30,000 Required: Allocate the joint costs of $175,000 to each of the products by USING the following methods: a. The value of sales at the split point b. Physical measurement C. NRV

Answer rating: 100% (QA)

Let me break this down stepbystep a Allocation of joint costs using value of sales at split point Sa... View the full answer