Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Question

Question

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows:

Joint Cost		Cereal	Quantity at Split-Off Point			Sales Price per Kilogram
$	98,000	Yummies		12,800	kilograms	$	6.80
		Crummies		8,800	kilograms		8.30

Required:

Use the relative-sales-value method to allocate the company’s joint production cost between Yummies and Crummies. (Round your calculation of relative proportions to 3 decimal places.)

	Sales Value at Split-off Point	Allocation of Joint Cost
Yummies
Crummies
Total

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculations	A	B	C = A x B	D = C / Total C x 100	E	F = E x D
Particulars	Quantity at Split-Off	Sales price per unit	Total sales value at Split-off	Relative percentage of total sales	Joint Costs	Allocated joint costs
Yummies	12800	6.8	87040	0.544	98000	53312
Crummies	8800	8.3	73040	0.456	98000	44688
		Total	160080			98000

Add a comment

Answer 2

Similar Homework Help Questions

The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals...

The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 98,000 Yummies 12,800 kilograms $ 6.80 Crummies 8,800 kilograms 8.30 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $2.30 per kilogram, and the mulch will sell for...
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 93,000 Yummies 12,300 kilograms $ 6.30 Crummies 8,300 kilograms 7.80 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $1.80 per kilogram, and the mulch will sell for $12.00 per kilogram. 2. Suppose the company does...
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 34,000 Yummies 18,900 kilograms $ 3.00 Crummies 8,100 kilograms 3.50 Required: Use the physical-units method to allocate the company’s joint production cost between Yummies and Crummies. (Do not round intermediate calculations.) Allocation of Joint Cost Yummies Crummies

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 93,000 Yummies 12,300 kilograms $ 6.30 Crummies 8,300 kilograms 7.80 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $1.80 per kilogram, and the mulch will sell for $12.00 per kilogram. Required: 1-a. Compute the net...
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 95,000 Yummies 12,500 kilograms $ 6.50 Crummies 8,500 kilograms 8.00 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $2.00 per kilogram, and the mulch will sell for $13.00 per kilogram. Required: 1-a. Compute the net incremental...
[The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two brea...

[The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 98,000 Yummies 12,800 kilograms $ 6.80 Crummies 8,800 kilograms 8.30 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $2.30 per kilogram, and the mulch will sell for...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price pe...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 95,000 Yummies 12,500 kilograms $ 6.50 Crummies 8,500 kilograms 8.00 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $2.00 per kilogram, and the mulch will sell for $13.00 per kilogram. Required: 1-a. Compute the net incremental...
2. Suppose the company does process Crummies into the mulch. Use the net-realizable- value method to...

2. Suppose the company does process Crummies into the mulch. Use the net-realizable- value method to allocate the joint production cost between the mulch and the Yummies. (Do not round intermediate calculations.) Allocation of Joint Cost Yummies Mulch Required information [The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point 12,000 kilograms 8,000 kilograms Sales Price...
Answer for the circle below only Joint Products - Cost Allocation: Some manufacturing processes start with...

Answer for the circle below only Joint Products - Cost Allocation: Some manufacturing processes start with incurring costs when the cost objects may not yet be identifiable. For example, during the refining process that transforms crude oil into different grades of gasoline, certain costs (joint costs) are incurred early in the process. Once the process reaches a point where each individual cost object is identifiable (split-off point), we must allocate the joint costs to these newly identifiable cost objects (joint...

Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are...

Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: X Y Z Total Units produced 15,000 11,000 7,000 33,000 Allocated joint costs $ 172,020 $ 109,800 $ 85,400 $ 367,220 Sales value at split-off ? 180,000 140,000 602,000 Additional costs for further processing 41,000 33,000 24,000 98,000 Sales value if processed further 373,000...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Homework Answers