Question

12 West Coast Designs produces three products: super, deluxe, and generic. Super and deluxe are its main products, generic is a by- product of super. Information on the past month's production processes follows. 0.76 points • In Department A, 264,000 units of the raw material X-1 are processed at a total cost of $314,948. After processing in Department A, 50 percent of the units are transferred to Department B, and 50 percent of the units (now unprocessed deluxe) are transferred to Department C. • In Department B, the materials received from Department A are processed at an additional cost of $234,000. Seventy percent of the units become super and are transferred to Department D. The remaining 30 percent emerge as generic and are sold at $4.80 per unit. The additional processing costs to make generic salable are $51,600. • In Department C, deluxe is processed at an additional cost of $820,000. A normal loss of 10 percent of the units of good output of deluxe occurs in this department. The remaining good output is then sold for $27 per unit. • In Department D, super is processed at an additional cost of $99,000. After this processing, super can be sold for $10 per unit. eBook Print Required: Prepare a schedule showing the allocation of the $314,948 joint cost to super and deluxe using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product. References Complete this question by entering your answers in the tabs below. Schedule Cost Allocation Prepare a schedule showing the allocation of the $314,948 joint cost to super and deluxe using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Super Deluxe Sales value after completion Sales revenue from Generic Separate processing costs: Department B Department C Department D Additional processing cost for Generic Approximate net realizable values S0S Schedule Cost Allocation >

Answer 1

70 % units transfered to Dept Die 132000*70% = 92400 Selling price=10 per unit. Therefore sales realization= 92400*10 = 924000 50% transferred to Dept B i.e 264000*50% = 132000 units 30% units emerge as generic i.e 132000*30% = 39600 Selling price=4.8 per unit. Therefore sales realization= 39600*4.8 = 190080 Units in Dept A = 264,000 50% transferred to Dept Ci.e 264000*50% = 132000 units 10% normal loss on units. Therefore units available for sale= 132000 - 10% = 118800 Selling price=27 per unit. Therefore sales realization= 118800*27 = 32076000

Statement of computation of Net Realizable values
Particulars	Super	Deluxe
Sales value after completion	924000	3207600
Sales revenue from generic	190080	0
Separate processing cost:
Dept B	234000	0
Dept C		820000
Dept D	99000	0
Additional processing cost for Generic	51600	0
Approx Net Realizable values	729480	2387600

Therefore Allocation of Joint cost of $314,948:

314948 * 729480 Super = 1799480 + 23876000)

314948 * 729480 Super = ? (3117080)

Super = 73706.25

314948 * 23876000 Deluce = 7 (729480 + 23876000)



Deluce =- 314948 * 23876000 (3117080)



Deluce = 241241.75