Question: The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $182,000. Additional
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $182,000. Additional information follows: If Processed Further Sales Value at Split-Off $ 410,000 380,000 320,000 Product Units Produced 73,000 77.000 41,000 Sales Values $ 500,000 440,000 410,000 Additional Costs $ 71,000 59,000 47,000 KB KC 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 $238,000 for every 41,000 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.) Product Joint costs KB b. Which, if either, product would you recommend Kyle Company sell at split-off? KA KB None of the above
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