Bonanza Co. manufactures products X and Y from a joint process
that also yields a by-product, Z. Revenue from sales of Z is
treated as a reduction of joint costs. Additional information is as
follows:
PRODUCTS | |||||||||||||
X | Y | Z | TOTAL | ||||||||||
Units produced | 34,000 | 34,000 | 17,000 | 85,000 | |||||||||
Joint costs | ? | ? | ? | $ | 332,000 | ||||||||
Sales value at split-off | $ | 510,000 | $ | 255,000 | $ | 17,000 | $ | 782,000 | |||||
Joint costs were allocated using the net realizable value method at
the split-off point. The joint costs allocated to product X
were
Multiple Choice
$255,000.
$127,500.
$142,800.
$210,000.
Joint cost allocable = 332000-17000 = 315000
Joint Cost allocation to product X = Total Joint Cost/Total net realizable value*Net realizable value of product X
= 315000/765000*510000
Joint cost allocation to product X = 210000
So answer is d) $210000
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product,...
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: PRODUCTS X Y Z TOTAL Units produced 21,000 21,000 10,500 52,500 Joint costs ? ? ? $ 267,000 Sales value at split-off $ 315,000 $ 157,500 $ 10,500 $ 483,000 Joint costs were allocated using the net realizable value method at the split-off point. The...
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: Units produced Joint costs Sales value at split-off X 29,000 ? $ 435,000 PRODUCTS Y 29,000 ? $217,500 Z 14,500 ? $14,500 TOTAL 72,500 $307,000 $667,000 Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to...
Bonanza Co manufactures products X and Y from a joint process that also ylelds a by-product Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows PRODUCTS 30.000 30,000 15.000 Units produced Joint costs Soles value stupitol TOTAL 75.000 $312.000 $690.000 $450,000 $225.000 $15.000 Joint costs were located using the net realizable value method at the split off pointThe joint costs alocated to prod O $112.500 O $130.800 $225.000 O 5190.000
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for the revenues from its by-product sales as other income. Additional information follows: M2 M1 22,500 Units produced Allocated joint costs Sales value at split- off B1 13,500 9,000 ? $280,000 $100,000 Total 45,000 $400,000 $800,000 $420,000 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product...
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Garrison Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $138,000. Sales values and costs needed to evaluate Garrison's production policy follow. Units Sales Value at...
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...
13) Garrison Co. produces three products - X, Y, and Z-from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison's production policy follow. Units Sales Value at If...
Bixel Components manufactures products A1 and A2 from a joint process. Total joint costs are $310,000. The sales value at split-off was $480,000 for 5,300 units of product A1 and $160,000 for 2,200 units of product A2. Required: Assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product A1? (Do not round intermediate calculations.)
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