Product Cost | $7,780 | |||
Working | ||||
Product | Sale value at split-off | Percent of Sales value | Joint cost | Allocated Joint cost |
A | $15,600 | 30.00% | $6,100 | $1,830 |
B | $36,400 | 70.00% | $6,100 | $4,270 |
$52,000 | $6,100 | |||
Product B | ||||
Joint Cost | $4,270 | |||
Separable processing cost | $3,510 | |||
(1,300 x $2.70) | ||||
$7,780 |
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs...
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,500 gallons of product A and 1,000 gallons of product B to the split-off point costs $6,400. The sales value at split-off is $3.00 per gallon for product A and $38.50 for product B. Product B requires an additional separable process beyond split-off at a cost of $3.00 per gallon before it can be sold....
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 4,300 gallons of product A and 1,400 gallons of product B to the split-off point costs $5,200. The sales value at split-off is $3.00 per gallon for product A and $21.50 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.80 per gallon before it...
31. Garage Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $105,000 in the production of 46,000 gallons of P and 81,000 gallons of Q. Garage can sell P and Q at split-off for $2.40 per gallon and $4.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows: P Q Separable processing costs $39,000 $59,000 Sales price (per gallon) if processed beyond split-off $3 $5 The...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 22.00 per pound 13,400 pounds B $ 16.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 22.00 per pound 13,400 pounds B $ 16.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $390,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 28.00 per pound $ 22.00 per pound $ 34.00...
Sell or Process Further Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B С Selling Price $25 per pound $19 per pound...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price 22.00 per pound $ 16.00 per pound $ 28.00 per gallon Quarterly Output...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: ProductSelling PriceQuarterly OutputA$16.00 per pound12,200 poundsB$10.00 per pound19,100 poundsC$22.00 per gallon3,400 gallonsEach product can be processed further after...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling prices and total output at the split-off point are as
follows:
Product
Selling Price
Quarterly
Output
A
$
16
per pound
15,000
pounds
B
$
8
per...