The Proud Bakers of Canada Company produces baking and bread flour. Joint products costs were $15,300...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Proud Bakers of Canada Company produces baking and bread flour. Joint products costs were $15,300 for the year and sales report the following for the end of the year. Product Baking flour Bread flour Sold (kilograms) 10,500 7,200 Ending Inventory (kilograms) 500 800 Selling price per kilogram $2.00 $1.50 Separable costs $3,000 $2,100 Required a. Allocate joint costs using the Constant Gross Margin NRV method. b. Calculate the cost per kilogram for each product. c. Prepare a Gross Margin Income Statement; report the income of each product and overall total for the company. Also provide the gross margin percentage for each product and total GM% for the company. The Proud Bakers of Canada Company produces baking and bread flour. Joint products costs were $15,300 for the year and sales report the following for the end of the year. Product Baking flour Bread flour Sold (kilograms) 10,500 7,200 Ending Inventory (kilograms) 500 800 Selling price per kilogram $2.00 $1.50 Separable costs $3,000 $2,100 Required a. Allocate joint costs using the Constant Gross Margin NRV method. b. Calculate the cost per kilogram for each product. c. Prepare a Gross Margin Income Statement; report the income of each product and overall total for the company. Also provide the gross margin percentage for each product and total GM% for the company.
Expert Answer:
Answer rating: 100% (QA)
To allocate joint costs using the Constant Gross Margin Net Realizable Value NRV method we need to follow these steps Step 1 Calculate the total sales value for each product Step 2 Calculate the gross ... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
The Princess Corporation grows, processes, packages, and sells three joint apple products: (a) sliced apples that are used in frozen pies, (b) applesauce, and (c) apple juice. The skin of the apple,...
-
The Princess Corporation grows, processes, packages, and sells three joint apple products: (a) sliced apples that are used in frozen pies, (b) applesauce, and (c) apple juice. The skin of the apple,...
-
Flori-Dante Srl grows, processes, packages and sells three joint apple products: (a) sliced apples that are used in frozen pies, (b) apple sauce, and (c) apple juice. The apple peel, processed as...
-
iHerb Inc. has several herb extractor evaporators that were purchased four years ago at a price of $20,000. These machines currently require annual maintenance costs of $2,000. However, the...
-
Berkshire Hathaway, the investment holding company of Warren Buffett, reports its less than 20% ownership investments according to generally accepted accounting principles. However, it also provides...
-
What is the basic cause of a recession?
-
On April 20, 1992, Daniel Hubbard (plaintiff), a potato farmer, and UTZ Quality Foods, Inc. (UTZ) (defendant), a potato chip manufacturer, entered an installment contract under which Hubbard agreed...
-
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials, X442 and Y661. The company uses...
-
You are to PAY 350,000 on March 16. Todays spot rate is $1.15/. The forward rate is $1.18/. On March 16 the spot rate is $1.14/. Futures contracts are for 125,000 each. Q1. How many contracts do you...
-
The Province provided municipalities with the option to eliminate the vacant land property class resulting in property tax bills being calculated at the full taxable rate in the property class. What...
-
Look around your house or work for a type of medicine that requires a dosage. Discuss the medicine, including its name, use, concentration, or dosage. Derive and solve a dosage problem based on the...
-
Michael's employer Acme promoted him and several months after asked him to sign a non-compete agreement which he did. The company then fell under financial hardhsip and Michael started a new on the...
-
Accounts payable are: Question 46 options: total amount of money owed for services rendered patients that have a delinquent account balance debts incurred and not yet paid patients outstanding...
-
For a given investment, the _____________ is the difference between a business's pre-money valuation and its post-money valuation. market rate for bank loans amount of the business's first year of...
-
This week we are going to implement two versions of the Fibonacci sequence and use threads to determine how much faster the second method is. For those unfamiliar, the Fibonacci sequence of numbers...
-
Task 3. Add Queue. Add a waiting list to your Cruise Ship class version. Modify your 'A: Add' and 'D: Delete' as follows: When you press 'A' to add a new customer, the customer should be added to...
-
Meg dent N ID am Dur of Exi or's S Case study (3) As of December 31, 2018, Eman Corporation reported the Dividends payable < Treasury stock Paid-in capital-share repurchase Other paid-in capital...
-
Give the structural formulas of the alkenes that, on ozonolysis, give: a. (CH3)2C=O and CH2=O b. Only (CH3CH2)2C=O c. CH3CH=O and CH3CH2CH=O d. O=CHCH2CH2CH2CH=O
-
What is an activity-based approach to designing a costing system?
-
George Jimenez is the controller at Balkin Electronics, a manufacturer of devices for the computer industry. The company may promote him to chief financial officer. Required 1. In this table,...
-
The accountant for SRC needs to record the information about the joint and byproducts in the general journal, but is not sure what the entries should be. The company has hired you as a consultant to...
-
In Problem 102, using an interest rate of 10 percent, what uniform series over the closed interval [1,8] is equivalent to the cash flow profile shown? Data from problem 102 Consider the following...
-
In Problem 102, using an interest rate of 8 percent, what single sum of money occurring at the end of year 8 is equivalent to the cash flow profile shown? Data from problem 102 Consider the following...
-
Consider the following cash flow profile: With a compounded annual interest rate of 6 percent, what single sum of money at the end of the sixth year will be equivalent to the cash flow series? EOY...
Study smarter with the SolutionInn App