Question:QUESTION 1) Riviera Company has a factory specialized in dairy production. It processes raw milk and...
Question
QUESTION 1) Riviera Company has a factory specialized in dairy production. It processes raw milk and...
QUESTION 1) Riviera Company has a factory specialized in dairy production. It processes raw milk and converts it into 3 products through a joint production process; "Butter", "Cream Cheese" and "Cheese". All of the joint products can be sold at the spilt-off point, but all of them can also be further processed into more premium products by adding some flavors and they can be sold after further processing. The joint cost for June 2020 was $540,000 and other information about the company's products for June 2020 were as follows: Kilograms Produced 98,000 Price at Selling Price After Split-Off Further Processing Further Processing (per kg) Cost per kilogram (per kg) 8 2 12 Products Butter Cream Cheese Cheese 7 6 125,000 77,000 20 16 10 3 REQUIRED: a) Calculate the unit costs for each of the joint products under the each method mentioned below; a) Physical Units Method b) Sales-Value-At-Split-Off Method c) Net Realizable Value Method b) Now compare the unit cost you have computed under each method above. Assume that you are the financial consultant of this company, and the boss asked you for an advice. Which method is more suitable for this company? Briefly explain your answer based on your findings (unit cost) and other factors, if necessary.
The Dairy Company produces three products from a joint processes
using whole milk: butter, cheese, and cream. The joint costs amount
to $24,000 per batch of output. Each batch totals 50,000 liters :
25% butter, 25%cheese, 50% cream . All products are processed
further without gain or loss in volume. Separable costs are butter,
$0.5 per liter, cheese , $2 per liter, cream ,$0.25 per liter . The
selling prices per liter are respectively; $3.50, $6, $4.
Required
a) How...
The Kenton Company processes unprocessed milk to produce two
products, Butter Cream and Condensed Milk. The following
information was collected for the month of June:
Direct Materials
processed: 27,500
gallons (after shrinkage)
Production:
Butter Cream
12,500
gallons
Condensed Milk
15,000
gallons
Sales:
Butter Cream
12,000
gallons
Condensed Milk
14,500
gallons
Sales Price:
Butter Cream
$4.50
per gallon
Condensed Milk
$8.00
per gallon
Separable costs in total:
Butter Cream
$13,000
Condensed Milk
$35,600
The cost of purchasing the of unprocessed milk and...
The Kenton Company processes unprocessed milk to produce two
products, Butter Cream and Condensed Milk. The following
information was collected for the month of June:
Direct Materials
processed: 22,500
gallons (after shrinkage)
Production:
Butter Cream
12,000
gallons
Condensed Milk
10,500
gallons
Sales:
Butter Cream
11,500
gallons
Condensed Milk
10,000
gallons
Sales Price:
Butter Cream
$3.50
per gallon
Condensed Milk
$9.00
per gallon
Separable costs in total:
Butter Cream
$15,000
Condensed Milk
$35,800
The cost of purchasing the of unprocessed milk and...
McBride ts Dairy has 200 gallons of cream and 600 gallons of
skimmed milk and has incurred $1,000 of joint costs at the
split-off point. It also incorporates a processing time weight
factor of 1 for the cream and 3 for the skimmed milk. The amount of
this cost that will be allocated to cream using the weighted
average method is
$250
$1,000
$900
$100
15. MC.19.125
McBride's Dairy has 200 gallons of heavy cream and 600 gallons
of skimmed...
11) The Great Foods Company processes milk into skim milk and butter. This year 70,000 litres of milk will be processed, costing $40,000. If processed to the split-off point, this will yield 40,000 litres of skim milk and 10,000 kilograms of butter. Skim milk is sold to distributors for $1 per litre and butter is sold for $0.75 per kilogram. Great Foods has the option of processing the two products further. Skim milk can be processed into canned, sweetened and...
AlMarai processes raw milk into various products. 1,000 Liters
of raw milk can be converted for SR 20,000 into 1,000 bottles of
0.5 Liter of Laban and 1,000 bottles of 0.5 Liters of processed
milk. A bottle of 0.5 Liter of Laban can be sold at split-off for
SR 5 and a bottle of 0.5 Liters of processed milk can be sold for
SR 10. AlMarai can process the 1,000 bottles of processed milk into
600 cans of fresh cream...
Question 2 Comfy Confections Company purchases cocoa beans and processes them into cocoa butter, a powder, and shells. The standard yield from processing each 100-grams sack of cocoa beans is 20 grams of butter, 45 grams of powder, and 35 grams of shells. The powder can be sold for RM0.90 per gram and the butter for RM1.10 per gram at the split-off point. The cost of the cocoa beans up to the split-off point cost is RM54 Required 1. Compute...
Wholesome Dairy processes milk. The cost of the milk processing is $1,250,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 2 gallons of milk to make a half gallon of ice cream. Additional Processing costs Product Milk Ice Cream Units Produced 750,000 gallons Selling Price $ 2.97 per gallon 5.99 per half gallon $ 0.20 per half gallon Required: 1. How many half...
Please write in MIC Word
AlMarai processes raw milk into various products. 1,000 Liters
of raw milk can be converted for SR 20,000 into 1,000 bottles of
0.5 Liter of Laban and 1,000 bottles of 0.5 Liters of processed
milk. A bottle of 0.5 Liter of Laban can be sold at split-off for
SR 5 and a bottle of 0.5 Liters of processed milk can be sold for
SR 10. AlMarai can process the 1,000 bottles of processed milk into...
Problem 2: The Green Company processes unprocessed goat milk up to the splitoff point where three products, condensed goat milk, skim goat milk, and cream result. The following information was collected for the month of October: Direct Materials processed: Production: 240,000 gallons (after shrinkage) 92,500 gallons 105,500 gallons 42,000 gallons $12.50 per gallon $4.50 per gallon $20 per gallon Condensed goat milk Skim goat milk Cream Sales Condensed goat milk Skim goat milk Cream The costs of purchasing the of...
11) The Great Foods Company processes milk into skim milk and butter. This year 70,000 litres of milk will be processed, costing $40,000. If processed to the split-off point, this will yield 40,000 litres of skim milk and 10,000 kilograms of butter. Skim milk is sold to distributors for $1 per litre and butter is sold for $0.75 per kilogram. Great Foods has the option of processing the two products further. Skim milk can be processed into canned, sweetened and...
Question 2 Comfy Confections Company purchases cocoa beans and processes them into cocoa butter, a powder, and shells. The standard yield from processing each 100-grams sack of cocoa beans is 20 grams of butter, 45 grams of powder, and 35 grams of shells. The powder can be sold for RM0.90 per gram and the butter for RM1.10 per gram at the split-off point. The cost of the cocoa beans up to the split-off point cost is RM54 Required 1. Compute...
Wholesome Dairy processes milk. The cost of the milk processing is $1,250,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 2 gallons of milk to make a half gallon of ice cream. Additional Processing costs Product Milk Ice Cream Units Produced 750,000 gallons Selling Price $ 2.97 per gallon 5.99 per half gallon $ 0.20 per half gallon Required: 1. How many half...
Problem 2: The Green Company processes unprocessed goat milk up to the splitoff point where three products, condensed goat milk, skim goat milk, and cream result. The following information was collected for the month of October: Direct Materials processed: Production: 240,000 gallons (after shrinkage) 92,500 gallons 105,500 gallons 42,000 gallons $12.50 per gallon $4.50 per gallon $20 per gallon Condensed goat milk Skim goat milk Cream Sales Condensed goat milk Skim goat milk Cream The costs of purchasing the of...