DNA Ltd. produces two main products, A and B, and a byproduct, C . There were...
DNA Ltd. produces two main products, A and B, and a byproduct, C . There were no beginning inventories. During April, it incurred $275,000 of joint costs, which are allocated to main products using the physical output method. Additional Information follows
| Product | Units Produced | Units Solds | Units Sales Prices |
| A | 12,000 | 9,600 | $22 |
| B | 18,000 | 15,300 | $38 |
| C | 6,000 | 5,200 | $3 |
Required
a) Assuming DNA recognizes by product revenue at the time of sale, What is the total value of ending inventory?
Homework Answers
Joint cost incurred = $275,000
Units produced of A = 12,000
Units produced of B = 18,000
Units produced of C = 6,000
Total units produced = Units produced of A + Units produced of B + Units produced of C
= 12,000+18,000+6,000
= 36,000
Cost per unit = Joint cost incurred / Total units produced
= 275,000/36,000
= $7.6388888888
| Product | Units Produced | Units Sold | Ending inventory | Cost per unit | Total cost of ending inventory |
| A | 12,000 | 9,600 | 2,400 | 7.6388888888 | 18,333 |
| B | 18,000 | 15,300 | 2,700 | 7.6388888888 | 20,625 |
| C | 6,000 | 5,200 | 800 | 7.6388888888 | 6111 |
| Total | $45,069 |
the total value of ending inventory $45,069.
Kindly comment if you need further assistance.
Thanks‼!
Add Answer to:
DNA Ltd. produces two main products, A and B, and a byproduct, C
. There were...
Tango Company produces joint products M, N, and T from a joint process. This information concerns...
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $140,000: After Split-Off Product Units Produced and Sold Total Separable Costs Total Final Sales Value M 12,000 $ 13,400 $ 180,000 N 6,000 10,400 160,000 T 7,000 5,200 29,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations....
Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint...
Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were X - $10,000; Y - $20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. What amount of joint costs will be allocated to Product X using the physical units method? a. $25,000 b....
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable...
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input 10 000 2 400 Additional...
The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint...
The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $0.90 per litre; turpentine, $0.60 per litre. Methanol sells for $6.30 per litre; turpentine sells for $4.20 per litre. Required Methanol Turpentine Total Physical measure of total production 10,000 30,000...
Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and...
Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B, and a by-product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 128,000 logs at a total cost of $353,000. The output of the process consisted of 34,300 units of grade A, 51,300 units of grade B, and 15,300 units of sawdust. The sawdust can be sold for $36,280. This is considered...
ABC Company produces three products in a joint production process. At the split-off point, all three...
ABC Company produces three products in a joint production process. At the split-off point, all three products are produced further and then sold. Information about these products for 2019, the most recent year, appears below: Product A Product B Product C Units produced ............... 20,000 48,000 12,000 Selling price ................ $41 per unit $50 per unit $65 per unit Additional processing costs .. $18 per unit $16 per unit $36 per unit Joint costs for 2019 totaled $600,000. During 2019,...
Benjamin Company produces products C, J, and R from a joint production process. Each product may...
Benjamin Company produces products C, J, and R from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for last year follow: Units Produced Sales Values at Split-Off Sales Values If Processed Further Costs of Processing Further Product C 6,000 $75,000 $100,000 $20,000 Product J 9,000 $70,000 $115,000 $36,000...
Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a...
Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,220 gallons of Chem-X with a cost of $109,800. Additional information regarding a batch follows. If Processed Further Product Units Produced Unit Sales Value at Split-off Additional Costs (Per Unit) Sales Value (Per Unit) M-10 26,840 $ 5.00 $ 2.00 $...
Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B...
Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor 24,000 12,000 The company's overhead costs of $54,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round your intermediate calculations.) Multiple Cholce $39,000 $50,000 $93,000 None of the answers are correct.
Webster Company produces 29,000 units of product A, 24,000 units of product B, and 12,500 units...
Webster Company produces 29,000 units of product A, 24,000 units of product B, and 12,500 units of product C from the same manufacturing process at a cost of $365,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $35 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 22,000 units of A, 23,000 units...
Question 3 Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input 10 000 2 400 Additional...
The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $0.90 per litre; turpentine, $0.60 per litre. Methanol sells for $6.30 per litre; turpentine sells for $4.20 per litre. Required Methanol Turpentine Total Physical measure of total production 10,000 30,000...
Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor 24,000 12,000 The company's overhead costs of $54,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round your intermediate calculations.) Multiple Cholce $39,000 $50,000 $93,000 None of the answers are correct.
Webster Company produces 29,000 units of product A, 24,000 units of product B, and 12,500 units of product C from the same manufacturing process at a cost of $365,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $35 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 22,000 units of A, 23,000 units...
Most questions answered within 3 hours.
-
Create a balanced compensation plan that you feel would
encourage a restaurant manager to be more...
asked 15 seconds ago -
Re: Human Physiology
Comment on the differences between representing V02 max as an
absolute number and...
asked 2 minutes ago -
A firm with a WACC of 10% is considering the following mutually
exclusive projects:
0
1...
asked 7 minutes ago -
. A 100.0 mL sample of 0.18 M HClO4 is titrated with 0.27 M
LiOH. Determine...
asked 30 minutes ago -
A regression equation that describes the relationship between
the amount of the bill ($) at a...
asked 1 hour ago -
exercise on VSEPR and molecular structrue.
octahedral
SeCl62-
TeCl62-
ClF62-
distorted
SeF62–
IF6–
asked 1 hour ago -
284 mL of a 0.52 M potassium hydroxide solution is added to 467
mL of a...
asked 1 hour ago -
Little’s Law: Val d’Costa is a world famous ski village in the
French Alps. Because of...
asked 2 hours ago -
Find the absolute error D for the calculation if A + B/C=D A=
9.4 +/- 0.4...
asked 3 hours ago -
New Air Heating and Cooling, manufactures furnaces and central
air units. The company pride itself on...
asked 3 hours ago -
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 5 hours ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 7 hours ago