Question

player.meducation.com Homepage - DSC-304-04-05 Production Connect -Class: Noland ACC 308 Fall 2019 MHE Reader a A 6 Euclid Corporation processes a patented chemical, P-I, and produces two outputs, P.11 and 12. In August, the costs to process PI are $144,000 for materials and $288.000 for conversion costs. P-11 has a sales value of $640,000 and P-12 has a sales value of $160,000. Required Using the net realizable value method, assign costs to P11 and P-12 for August. 11-44. Estimated Net Realizable Value Method (LO11-7) Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $40.000 after incurring additional processing costs of $12,000. The copper is sold for $80,000 after additional processing costs of $10,000, and the manganese yield sells for $60,000 but requires additional processing costs of $18,000. The joint costs of processing the raw ore, including the cost of mining, are $100,000 per batch. Required Use the estimated net realizable value method to allocate the joint processing costs. 11-45. Net Realizable Value Method to Solve for Unknowns LO 11-7) GG Products, Inc., prepares tips and stems from a joint process using asparagus. It produced 215,000 units of tips having a sales value at the split-off point of $75,600. It produced 215,000 units of stems having a sales value at split-off of $32,400. Using the net realizable value method, the portion of the total joint product costs allocated to tips was $45,500

Answer 1

Solution:

AB AC AD AE 34 35 36 37 Lead Copper Manganese Total 39 40 Final sale vale of total production Deduct: additional processing costs NRV at split off point Weighting Joint costs allocated 41 40000 12000 28000 0.2 20000 80000 10000 70000 0.5 50000 600001 18000 42000 0.3 30000 180000 40000 140000 43 100000 | 44 | 45 46 48 53 54 56 57 59 60 61 62 63 64 65 68 69 70 72 73 77 78 79 80 82 83 Sheet364 (2) Sheet417 Sheet407 (2) Sheet425 Sheet