Question

Blaine, Inc., produces three products, Argon, Xon, and Zeon, from a joint production process. Data on the process are as follows: Required Determine the value for each missed item. (Do not round intermediate calculations.) Product Allocated joint cost Sales value at split-off Additional processing costs Sales value if processed Contribution from processing further Units produced Argon Xon Zeon Total $ 45 $ 90 $ 60 150 $ 150S 300 $ 1,200 $ 450 $ 900 15 S 0 360 750 1,250 3,000 5,000

Answer 1

Determine missing item : Product Allocated joint cost Sale value at split off point Additional processing costs Sale value if processed Contribution from processing further Unit produced Argon Xon Zeon Total $45 $75 $3300 $450| $90 $150 $660 $900 $60 $150| $180 $150 $300 $1,200 $15 $0 $360| 750 1250 3000 5000

Determination of lettered values: Here in the given question the letter 'a' represents sales at split off point of Xon product which can be calculated by subtracting additional processing costs from the sales value if processed as follows sales at split off point of Xon=300-150 = 150 The letter 'd' represents the sales at split of point off of Zeon product which can be calculated by subtracting sales at split off point of Argon and Xon from the total sales at split off point sales at split off point of Zeon=900-90-150 =660 The letter 'e' represents additional processing cost of Zeon which can be calculated by subtracting sales at split off point and contribution from processing further from the sales value if processed of Zeon as follows Additional processing cost of Zeon = 1,200-660-360 =180 The letters 'b' and 'c' represents joint costs allocated to Xon and Zeon respectively they can be calculated on the basis of sales at split off point as follows 450x150 Joint cost of Xon = 900 =75 450 Joint cost of Zeon = 2X660 900 =330