Question: urgent please this is full question 1 Joint Cost Allocation (10 Marks) 2 3 Orange Paper Company processes wood pulp into two products. During April

urgent please
urgent please this is full question 1 Joint Cost Allocation (10 Marks)
2 3 Orange Paper Company processes wood pulp into two products. During
April the joi costs of processing were $132,000. Production and sales value
this is full question

1 Joint Cost Allocation (10 Marks) 2 3 Orange Paper Company processes wood pulp into two products. During April the joi costs of processing were $132,000. Production and sales value information for the month were as follows: 4 5 5 7 B Product Paper O Cardboard 1 Kilograms Produced Required: 135,000 98,000 Sales Value at splitoff Point $55,000 40,000 Separable Cost $217,000 259,000 Paper sells for $2.65 a kilogram and cardboard sells for $3.40 a kilogram. There were no beginning or ending inventories for April. 1) Determine the amounts to be allocated to each product using the: B 26 27 28 29 30 31 32 33 C D 16 Required: 17 18 1) Determine the amounts to be allocated to each product using the: 19 20 a) sales value at split-off method (4 marks) 21 22 23 24 25 F b) estimated net realizable value method (4 marks) 44 45 2) If the cardboard is sold at the splitoff point then the post splitoff factory capacit 46 be renovated and leased for the year. The cost of the renovation is budgeted 47 at $125,000 and the annual lease revenue will be $165,000. Determine if it is more 48 profitable for the cardboard to be sold at the splitoff point or at the end of producti (2 marks) 49 50 51

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!