Problem

Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Product...

Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow.

 

Delta

Kappa

Omega

Total

Units produced

4,000

2,000

1,000

7,000

Joint cost allocation

$36,000

?

?

$60,000

Sales value at split-off

?

?

$15,000

$100,000

Additional costs if processed further

$7,000

$5,000

$3,000

$15,000

Sales value if processed further

$70,000

$25,000

$20,000

$115,000

Required:

l. Assuming that joint costs are allocated using the relative-sales-value method, what were the joint costs allocated to products Kappa and Omega?

2. Assuming that joint costs are allocated using the relative-sales-value method what was the sales value at split-off for product Delta?

3. Use the net-realizable-value method to allocate the joint production costs to the three products.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search