Sales value and physical value allocation To-Go produces milk and sour cream from a joint process. During June, the company produced 432,000 quarts of milk and 342,000 pints of sour cream (there are two pints in a quart). Sales value at split-off point was $679,320 for the milk and $319,680 for the sour cream. The milk was assigned $226,440 of the joint cost. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. a. Using the sales value at split-off approach, determine the total joint cost for June. $ 0 b. Assume, instead, that the joint cost was allocated based on the number of quarts produced. What was the total joint cost incurred in June? $ 0

Sales value and physical value allocation To-Go produces milk and sour cream from a joint process. During June, the company produced 432,000 quarts of milk and 342,000 pints of sour cream (there are two pints in a quart). Sales value at split-off point was $679,320 for the milk and $319,680 for the sour cream. The milk was assigned $226,440 of the joint cost. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. a. Using the sales value at split-off approach, determine the total joint cost for June. $ 0 b. Assume, instead, that the joint cost was allocated based on the number of quarts produced. What was the total joint cost incurred in June? $ 0

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

See similar textbooks

Similar questions

CUIK-983 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the Joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output 10,000 pounds A $ 5 per pound B $ 6 per pound 22,000 pounds C $ 14 per gallon 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A $ 53,000 B $ 38,000 C $ 18,000 Which products should be processed further? Multiple Choice Multiple Choice B and C A and C A, B, and C A and B $ 7 per pound $ 11 per pound $20 per gallon
CUIK-649 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output 10,000 pounds A $ 4 per pound B $ 6 per pound 22,000 pounds с $ 10 per gallon 5.000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A $ 53.000 $ B $ 38,000 $ с $ 18,000 $ Which products should be processed further? Multiple Choice O O O A and B A and C B and C AR and C 7 per pound 12 per pound 19 per gallon
To-Go produces milk and sour cream from a joint process. During June, the company produced 336,000 quarts of milk and 266,000 pints of sour cream (there are two pints in a quart). Sales value at split-off point was $528,360 for the milk and $248,640 for the sour cream. The milk was assigned $176,120 of the joint cost. a. Using the sales value at split-off approach, determine the total joint cost for June. $______ b. Assume, instead, that the joint cost was allocated based on the number of quarts produced. What was the total joint cost incurred in June? $______
A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $9,000. Pounds Sales priceper pound atsplit-off Disposalcost perpound atsplit-off Furtherprocessingper pound Final saleprice perpound Alpha 1,800 $7.00 $4.50 $1.50 $ 8.00 Omega 2,600 10.00 6.00 3.50 12.25 If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using a physical measure method, what amount of joint processing cost is allocated to Omega (round to the nearest dollar)? Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)?
Canada corporation manufactures three products X,Y &Z from a joint process. February production is 4,000 X; 7,000 Y; and 8,000 Z. Respective per unit selling prices at splitoff are $15, $10, and $5. Joint costs up to the splitoff point are $75,000. If joint costs are allocated based upon the sales value at splitoff, what ?amount of joint costs will be allocated to Z .a $28,125 .b $26,471 .C $30,882 .d $17,647
Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Split-off Point Separable costs Sugar 15,000 $200,000 $60,000 Sugar Syrup 10,000 175,000 192,000 Fructose Syrup 5,000 125,000 96,000 Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $300,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 10.00 per pound 11,000 pounds B $ 4.00 per pound 17,300 pounds C $ 16.00 per gallon 2,200 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price A $ 48,250 $ 14.10 per pound B $ 68,055 $ 9.10 per pound C $ 23,780 $ 23.10 per gallon Required: 1. What is the financial advantage…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $300,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 10.00 per pound 11,000 pounds B $ 4.00 per pound 17,300 pounds C $ 16.00 per gallon 2,200 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price A $ 48,250 $ 14.10 per pound B $ 68,055 $ 9.10 per pound C $ 23,780 $ 23.10 per gallon Required: 1. What is the financial advantage…
A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $18,000. Pounds Sales priceper pound atsplit-off Disposalcost perpound atsplit-off Furtherprocessingper pound Final saleprice perpound Alpha 1,260 $7.00 $4.50 $1.50 $ 8.00 Omega 2,940 10.00 6.00 3.50 12.25 If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)? Group of answer choices $13,846 $4,154 $2,938 $5,400
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $27,300 $ 18,200 $ 45,500 Sales value at split-off point $ 30,000 $20,000 $50,000 Costs of further processing $ 24,200 $ 18,500 $ 42,700 Sales value after further processing $ 47,800 $58,300 $ 106,100 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d.…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price QuarterlyOutput A $ 16 per pound 15,000 pounds B $ 8 per pound 20,000 pounds C $ 25 per gallon 4,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product AdditionalProcessingCosts SellingPrice A $ 63,000 $ 20 per pound B $ 80,000 $ 13 per pound C $ 36,000 $ 32 per gallon Required: 1. What is the financial advantage (disadvantage)…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 16 per pound $8 per pound $25 per gallon Product A B C Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs $ 63,000 $ 80,000 $ 36,000 Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons Selling Price $ 20 per pound $ 13 per pound $32 per gallon. Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products…