The following information relates to a joint production process for three products, with a total joint...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information relates to a joint production process for three products, with a total joint production cost of $135,000. There are no separable processing costs for any of the three products. Sales Value at Unita at Split-ort $ 109,000 54,000 27,000 $ 270,000 Rroduct Split-oft 260 780 1,560 2,600 Assume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is $2.700 instead of $27,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Assume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is $2,700 instead of $27,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Allocatod Joint Cost Product 1. 2. 3. The following information relates to a joint production process for three products, with a total joint production cost of $135,000. There are no separable processing costs for any of the three products. Sales Value at Unita at Split-ort $ 109,000 54,000 27,000 $ 270,000 Rroduct Split-oft 260 780 1,560 2,600 Assume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is $2.700 instead of $27,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Assume that the total sales value at the split-off point for product 1 is $81,000 instead of $189,000 and the sales value of product 3 is $2,700 instead of $27,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Allocatod Joint Cost Product 1. 2. 3.
Expert Answer:
Answer rating: 100% (QA)
Allocation of Joint Cost to Three Pruducts Product Allocated Joint cos... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following information relates to a joint production process for three products, with a total joint production cost of $110,000. There are no separable processing costs for any of the three...
-
The following information relates to a capital lease between Bradford Electric Co. (lessee) and Widstoe Manufacturing Inc. (lessor). The lease term began on January 1, 2011. Widstoe recorded the...
-
The following information relates to a capital lease between Bradford Electric Co. (lessee) and Widstoe Manufacturing Inc. (lessor). The lease term began on January 1, 2013. Widstoe recorded the...
-
Three friends are choosing a restaurant for dinner. Here are their preferences: a. If the three friends use a Borda count to make their decision, where do they go to eat? b. On their way to their...
-
Sony Corporation is a leading international supplier of audio and video equipment. The Sony annual report at the end of the 2011 fiscal year included the following balance sheet items (Japanese yen...
-
Infection with certain viruses inhibits snRNA processing in eukaryotic cells. Explain why this favors the expression of viral genes in the host cell.
-
P(x < 57) The random variable x is normally distributed with mean = 74 and standard deviation = 8. Find the indicated probability.
-
Refer to the information about Bonanza provided in Problem P12-16. You are an investment analyst for Remigny Venture Capital. Remigny raises capital from individual investors and invests in promising...
-
Explore the role of ocean energy technologies, such as wave energy converters and tidal stream generators, in diversifying renewable energy sources, emphasizing the engineering challenges,...
-
An object of mass m1 on a frictionless horizontal table is connected to an object of mass m2 through a very light pulley P1 and a light fixed pulley P2 as shown in Figure P5.34. (a) If a1 and a2 are...
-
How is Quest Global for a chemical engineer?
-
Problem P3.12 seems to demonstrate that the efficiency of the reheated Rankine cycle gets better as the work distribution between the high pressure (HP) and low pressure (LP) turbines becomes more...
-
A heat engine operates between two finite reservoirs, initially at 800 and \(200 \mathrm{~K}\), respectively. The temperature of the hot reservoir falls by \(1 \mathrm{~K}\) for each \(1...
-
Recalculate P3.11 with the pressure at which steam is reheated and reduced to 5 bar. What have been the benefits of using this lower pressure? [32.36\%; 51.40\%; \(1101 \mathrm{~kW} /(\mathrm{kg} /...
-
Air enters the compressor of a simple gas turbine at a pressure of \(1 \mathrm{bar}\) and a temperature of \(25{ }^{\circ} \mathrm{C}\). The compressor has a pressure ratio of 15 , and an isentropic...
-
Using the FRED website, chart the level of M1 and M2. Chart 12month growth rates for each. What might you infer about the performance of the economy based on these growth rates?
-
1a record the beginning of the lease for n-lservices.2a record the lease payment made by n-l services3a record amortization for n-l services4a record the lease payment made by n-l services5a reco On...
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
Under what conditions is percentage-of completion accounting recommended for construction contractors?
-
As indicated in the case at the beginning of this chapter, Xerox was manipulating income between the years 1997 through 1999. Below are revenue, gross profit, net income, and operating cash flow data...
-
Changes in the balance sheet account balances for the Bubble Bobble Co. during 2013 follow. Dividends declared during 2013 were $18,000. Calculate the net income for the year assuming that no...
-
On May 8, 1984, Hannah Motsi graduated from Louisiana State University. She set to work opening a coffee shop in Baton Rouge called HannaH and found a perfect location in a new development. Using a...
-
How does the firms WACC (with taxes) change with leverage?
-
Assume that Microsoft has no debt, a total market value of $2 trillion, and a marginal tax rate of 21%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13%...
Study smarter with the SolutionInn App