Question: please help Physical Units Method, Relative Sales Value Method Farlelgh Petrolewm, Incy is a small company that acquires Wigh-grade crude of from low-volume production weils

please help  please help Physical Units Method, Relative Sales Value Method Farlelgh Petrolewm,
Incy is a small company that acquires Wigh-grade crude of from low-volume

Physical Units Method, Relative Sales Value Method Farlelgh Petrolewm, Incy is a small company that acquires Wigh-grade crude of from low-volume production weils owned by individuais and smel partnerahips. The eride oil is processed in a single refinery into Two Oil, Six Oily and impure distillates. Farleigh fetroleum does not have the technology or capacity to process these products furthet and sells most of its output each month to major refineries. There were no beginning finished goods or work-in-process inventaries on Agril t. The production costs and output of Farieigh Petroleum for April are as follons: Data on barrels produced and seiling price: Two Oil, 300, 000 barrels produced; sales price, $45 per barrel Six Oil, 170,000 barrels produced; sales price, $25 per barrel Distillates, 90,000 barrels produced; sales price, 514 per barrel Requiredt 1. Calculate the amount of joint production cost that Farleigh Petroleum would allocate to each of the throe joint products by asing the physical units method. (Carry out the ratio calculation to four decimal places. Round allocated costs to the nearest dollar.) Wwore: The cotar or the allocated costs does not equal aue to rounding error) Distilates, 90,000 barreis produced; sales price, $14 per barrel Required 1. Calculate the amount of joint production cost that Farieigh Petroleum would allocate to each of the three joint procucts by uking the phyrical units method. (Carry out the ratio calculation to four decialal places. Round allocated cests to the nearest dollar.) 4vore: The total of the allocated costs does not equal due to rounding error) 2. Calculate the amount of joint production cost that Farleigh Petroleum would allocate to each of the three joint products by using the relative sales value method. (Carry out the ratio calculation to four decimal places. Round allocated costs to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!