Question: Creator Company processes a raw material that produces two joint products Magna and Delta. At split-off, Magna can be sold for $8 per pound and
Creator Company processes a raw material that produces two joint products Magna and Delta. At split-off, Magna can be sold for $8 per pound and Delta can be sold for $10 per pound. It costs $108 to produce a batch of Magna and Delta. Each batch contains 12 pounds of Magna and 6 pounds of Delta.
Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Allocate the joint cost of producing Magna and Delta using the physical measurement method. To Magna: $Answer To Delta: $Answer b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. Total Revenue: $Answer To Magna: $Answer To Delta: $Answer c) The sales manager has advised that a batch of 6 pounds of Delta can be processed further at an additional cost of $16. With this additional processing, the 6 pounds of Delta can be sold for $8 a pound. Allocate the $108 cost to Magna and Delta using the net realizable value method if Delta is processed further. Total net realizable value: $Answer To Magna: $Answer To Delta: $Answer
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
