Question

Question 27 3 points Save Answer Netrone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year: Direct material processed: Production: Standard Premium Sales: Standard Premium 400 kgs (Both standard and premium chips weigh 20 grams each 10,000 chips 6800 chips 9700 at $110 per chip 6200 at $190 per chip The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 16,800 chips of good products was $1,950,000. Beginning inventories totalled 140 chips for Standard and 90 chips for Premium. Ending inventory amounts reflected 140 chips of Standard and 90 chips of Premium October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips? (Round intermediary percentages to the nearest hundredth) A $1,160,640 B. $975.000 C. $1,189,623 D. $1,226,415

Answer 1

C2 X for quantity produced (chips) ДА В E F quantity produced (chips) 10,000 6,800 16,800 percentage share in total quantity produced 59.52% 40.48% standard premium I total joint costs = $1,950,000 allocated joint costs $ 1,160,640 $ 789,360 tandard premium hence, the correct answer is A. $1,160,640

for formulas and calculations, refer to the image below -

X fic quantity produced (chips) A quantity produced (chips) percentage share in total quantity produced standard 10000 premium 6800 =SUM(C3:04) =ROUND(C3/$C$5,4) =ROUND(04/$C$5,4) total joint costs = 1950000 allocated joint costs standard =$D$7*D3 premium =$D$7*D4 hence, the correct answer is A. $1,160,640

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