Pipefish Lumber Company processes timber into four products. During the month of May, the company incurred...

 

Transcribed Image Text:

Pipefish Lumber Company processes timber into four products. During the month of May, the company incurred joint processing costs of $350,000. There was no inventory at the beginning of the month. Information concerning the products that come out of the joint process is provided below. PIPEFISH LUMBER COMPANY INFORMATION RELATING TO PRODUCTS MANUFACTURED FROM A JOINT PROCESS Product 2 x 4's 2 x 6's 4x4's Slabs REQUIRED: (1) 2 Quantity Produced Sales Value at Split Off Per Unit 6,000,000 feet $ 3,000,000 feet 2,000,000 feet 1,000,000 feet 0.30 per foot 0.40 per foot 0.45 per foot 0.10 per foot Quantity in Ending Inventory 500,000 feet 250,000 feet 100,000 feet 50,000 feet Using the attached form, allocate the joint costs of production to each of the products using the sales value at split off method. Round your allocation rate to four decimal places and all other dollar amounts to the nearest whole dollar. Using the attached form, determine the value of the ending inventory for the company for the month of May. Round costs per unit to six decimal places and all other dollar amounts to the nearest whole dollar. Pipefish Lumber Company processes timber into four products. During the month of May, the company incurred joint processing costs of $350,000. There was no inventory at the beginning of the month. Information concerning the products that come out of the joint process is provided below. PIPEFISH LUMBER COMPANY INFORMATION RELATING TO PRODUCTS MANUFACTURED FROM A JOINT PROCESS Product 2 x 4's 2 x 6's 4x4's Slabs REQUIRED: (1) 2 Quantity Produced Sales Value at Split Off Per Unit 6,000,000 feet $ 3,000,000 feet 2,000,000 feet 1,000,000 feet 0.30 per foot 0.40 per foot 0.45 per foot 0.10 per foot Quantity in Ending Inventory 500,000 feet 250,000 feet 100,000 feet 50,000 feet Using the attached form, allocate the joint costs of production to each of the products using the sales value at split off method. Round your allocation rate to four decimal places and all other dollar amounts to the nearest whole dollar. Using the attached form, determine the value of the ending inventory for the company for the month of May. Round costs per unit to six decimal places and all other dollar amounts to the nearest whole dollar.

Answer rating: 100% (QA)

1 Calculation of Sales value at split off point and calculation of joint cost allocati... View the full answer