Exercise 11-46 Physical Quantities Method; Sell or Process Further (LO 11-8, 9)

(I included my work on Excel, please let me know where I messed up and give step by step calculations)

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $199,000. Additional information follows:

					If Processed Further
Product	Units Produced	Sales Value at Split-Off			Sales Values			Additional Costs
KA	66,000	$	340,000		$	430,000		$	64,000
KB	70,000		310,000			370,000			52,000
KC	34,000		250,000			340,000			40,000

After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $154,600 for every 34,000 units produced.

Required:

a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.)

b. Which, if either, product would you recommend Kyle Company sell at split-off?

	KA
	KB
	None of the above

his window shows your responses and what was marked correct and incorrect from your previous attempt. . Award: 0.22 out of 0.66 points Exercise 11-46 Physical Quantities Method; Sell or Process Further (LO 11-8, 9) The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $199,000. Additional information follows If Processed Further Product KA KB KC Sales Value at Split-Off $ 340,000 310,000 250,000 Units Produced Sales Values 66,000 70,000 34,000 $430,000 370,000 340,000 Additional Costs $64,000 52,000 40,000 After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $154,600 for every 34,000 units produced Required a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.) Answer is complete but not entirely correct Product KA KB oint costs $ 96,574 $ 102,426 b. Which, if either, product would you recommend Kyle Company sell at split-off? O KA None of the above P27 10 11 Required a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.) 12 14 15 16 17 Product KA KB Joint Costs 96,573.53 102,426.47 A.) To compute the allocated joint costs to KA and KB, the percentage of the product's sales value at split off to 18 the total sales value of the two products should be multiplied by the total joint costs. 20 Total costs Allocated costs +additional costs oint cost $199,000 $154,600 $353,600 23 24 Joint costs allocated to KA Number of units produced by KAx Joint product costs (number of units produced by KA+units produced by KB 25 26 27 28 29 30 199,000 $96,573.53 joint allocated cost to KA 66,000x 136,000 Joint costs allocated to KB Number of units produced by KB x Joint product costs (number of units produced by KA+units produced by KB 32 $199,000 S102,426.47 joint allocated cost to KB 70,000x 136,000 34 11.46 11-44 | 11.56 | 11.54 | 11-66 | 11-68 11-68 (2) | 11-69 | 11.52 | 11.56(2) | 11.85 |