Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities on the property. Okapuka Farm rears the cattle themselves and each animal slaughtered results in the following products; Fresh Meat which sells for N$25 per kg, some portion of meat is processed into Biltong and the biltong are sold for N$50 per kg, the Hides from the cattle are further processed on the farm and sold to a company that manufacture and sell leather shoes, Shilongo Leather for N$40 each. Horns are also processed further and sold to local Craftsmen for N$800 per pair. Scraps, Hooves and Bones which are donated to the local SPCA (Society for the Prevention of Cruelty to Animals). During October 2021, 250 cattle were slaughtered. Joint costs incurred in the slaughtering process per animal, based on normal capacity (budgeted) of 300 animals, has been summarised as follows: Variable costs, (excluding cost of the animal) at N$1.00 per kg. ● Fixed cost N$108 000 per month. • The cost of the animal is N$2 500, and on average it weighs 300 kg. ● Each animal, on average, yields the following: . A pair of horns weighing 10 kg Biltong meat weighing 70 kg Fresh meat weighing 100 kg ● ● ● ● Hide weighing 40 kg Scraps and bones weighing 80 kg Further processing costs are as follows: Horns Variable costs - Per animal - Per kg N$40 Biltong N$5 Hides N$15 Total N$55 N$5 You are recently hired by Okapuka Tannery and your first task is to allocate the joint costs to the joint products. Except for the scraps, hooves and bones, hides are the only by-product. The NRV of the by- product should be used to reduce the joint cost of the joint products. REQUIRED 3.1 3.2 3.3 3.4 Use the net Realizable value method to allocate joint costs to the products. Use the physical unit method to allocate joint costs to the products. Use the constant gross profit method to allocate joint costs to the products. The management of Okapuka Tannery thinks the sales value method of allocating joint costs is the best method for decision making. Explain whether you agree or disagree with this statement. Okapuka Tannery in Windhoek district runs a butchery on their farm in addition to other activities on the property. Okapuka Farm rears the cattle themselves and each animal slaughtered results in the following products; Fresh Meat which sells for N$25 per kg, some portion of meat is processed into Biltong and the biltong are sold for N$50 per kg, the Hides from the cattle are further processed on the farm and sold to a company that manufacture and sell leather shoes, Shilongo Leather for N$40 each. Horns are also processed further and sold to local Craftsmen for N$800 per pair. Scraps, Hooves and Bones which are donated to the local SPCA (Society for the Prevention of Cruelty to Animals). During October 2021, 250 cattle were slaughtered. Joint costs incurred in the slaughtering process per animal, based on normal capacity (budgeted) of 300 animals, has been summarised as follows: Variable costs, (excluding cost of the animal) at N$1.00 per kg. ● Fixed cost N$108 000 per month. • The cost of the animal is N$2 500, and on average it weighs 300 kg. ● Each animal, on average, yields the following: . A pair of horns weighing 10 kg Biltong meat weighing 70 kg Fresh meat weighing 100 kg ● ● ● ● Hide weighing 40 kg Scraps and bones weighing 80 kg Further processing costs are as follows: Horns Variable costs - Per animal - Per kg N$40 Biltong N$5 Hides N$15 Total N$55 N$5 You are recently hired by Okapuka Tannery and your first task is to allocate the joint costs to the joint products. Except for the scraps, hooves and bones, hides are the only by-product. The NRV of the by- product should be used to reduce the joint cost of the joint products. REQUIRED 3.1 3.2 3.3 3.4 Use the net Realizable value method to allocate joint costs to the products. Use the physical unit method to allocate joint costs to the products. Use the constant gross profit method to allocate joint costs to the products. The management of Okapuka Tannery thinks the sales value method of allocating joint costs is the best method for decision making. Explain whether you agree or disagree with this statement.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these computer network questions
-
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...
-
Read the below case and help me with the following question: Identify and prioritize the management accounting issues Full analysis of options and decisions to be made including the status quo...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Where is Unrealized Gain or LossEquity reported on the balance sheet?
-
What is the order of magnitude of the number of moles of matter in the observable universe?
-
What is TME? Give examples.
-
Longman Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Assume Longman needs to allocate two...
-
Presented here are the financial statements of Concord Company. Concord Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $38,000 $20,900 Accounts receivable 33,000 19,300...
-
Complete Alvins Music Inc.s (AMI) 2020 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below. Neither Form 4562 for depreciation nor Form 4797 for the sale of...
-
4. The wall (0.6 m, k = 0.2 W/m-C) is constantly heated with the flux of 6000W/m on the left surface and the right surface temperature is 20C. Find the surface temperature under steady conditions...
-
In transonic airfoil flow, how can the lift loss due to the flatness of the upper airfoil be compensated by the change of the lower airfoil?
-
What are the main characteristics of the supercritical airfoil flow? Why can the flat upper wing suppress shock and reduce shock intensity?
-
What conditions is the shock wave drag of transonic airfoil the largest?
-
What is a shock stall? How does the lift coefficient change with Mach number when a shock stall occurs?
-
Try to explain the main factors affecting the lift-to-drag ratio of an airfoil.
-
1. Two particles with J=1 and J2-2 are coupled, with an energy described by H = J.J, &> 0. a) Determine all of the energies for the coupled system. b) Determine all the possible states J M) in the J,...
-
Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model. Andria Mullins, financial manager of Webster Electronics, has been...
-
During 2012, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30)........................$21,500 Baking equipment (June 30)...
-
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2012, which he actively manages. During 2012, Walter's share of the...
-
Calculate the amount of the child and dependent care credit allowed for 2012 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla...
-
How closely related do you believe language and thought to be? During the production of Chapter 3 in this book, the authors and editors debated whether we should use the word "autistics" or the...
-
When did human language originate?
-
Describe American styles of nonverbal communication. Are there different styles of nonverbal communication in different areas of the United States?
Study smarter with the SolutionInn App