Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light
Question:
Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light beer, dark beer, and an impure byproduct. There were no beginning inventories or work-in-process on December. The production costs of Red Horse, Inc. for December are presented below:
Costs:
Materials acquired and placed in production P 5,000,000
Direct labor2,000,000
Factory overhead3,000,000
Production and sales information:
The portion of joint production costs assigned to dark beer based on the physical output would be:
2.The portion of joint production costs assigned to light beer based on the relative sales value of output would be
3.Sonimad Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of P 300,000 and results in 60,000 units of MSB and 90,000 units of CBL. Each MSB sells for P 2 per unit, and each CBL sells for P 4 per unit. Assuming no further processing work is done after the split off point, the amount of joint costs allocated to commercial building lumber (CBL) on a physical quantity allocation basis would be:
4.If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n)
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ