oint Cost Allocation—Weighted Average Method
Gary’s Grooves Co. produces two types of carving knives, one with a handle made of a polymer that looks like walnut wood and another with a handle made with a polymer that looks like red oak. The knives are made through a joint production molding process that produces 344 knife blades for red oak handle knives and 172 knife blades for walnut handle knives at the split-off point. The polymer for the red oak handle knife blades requires twice as much cooling time as the polymer for the walnut handle knife blades, although all knives are removed from the joint molding process at the same time (i.e., once the cooling for the red oak handle knives is complete). The joint production process costs a total of $5,000.
Assuming the company allocates joint costs using the weighted average method based on the required cooling time of the two joint products, determine the amount of joint production costs allocated to each type of knife using the weighted average method.
Joint Product | Allocation |
Red oak handle carving knife | $ |
Walnut handle carving knife | |
Totals | $ |
Weighted production units:
Red Oak = 344 X 2 = 688
Walnut = 172 X 1 = 172
Total = 688 + 172 = 860
Joint cost allocation:
Red Oak = $5,000 X 688/860 = $4,000
Walnut = $5,000 X 172/860 = $1,000
Joint product | Allocation |
Red oak handle carving knife | $4,000 |
Walnut handle carving knife | $1,000 |
Total | $5,000 |
oint Cost Allocation—Weighted Average Method Gary’s Grooves Co. produces two types of carving knives, one with...
Joint Cost Allocation—Weighted Average Method Gary’s Grooves Co. produces two types of carving knives, one with a handle made of a polymer that looks like walnut wood and another with a handle made with a polymer that looks like red oak. The knives are made through a joint production molding process that produces 330 knife blades for red oak handle knives and 220 knife blades for walnut handle knives at the split-off point. The polymer for the red oak handle...
3. Support Department Cost Allocation—Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Department Security Department Molding Department Assembly Department Square feet 600 3,600 3,600 1,800 ...
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Joint Cost Allocation-Weighted Average Method Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company's core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally...
Please show full details step by steps thanks Joint Cost Allocation—Weighted Average Method Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company’s core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the...
Gary's Grooves produces two carvings, me prodhime por thekerd. These were the produto process that wives are removed from the molding the same time, the che production process of 5,000 Asuming the company located at the red care produsere e morty production cost od to those in the drage med Allocation Want handle carving
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Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company’s core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Management at Carving Creations...
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