PLEASE SHOW SOLUTIONS THANK YOU Lane Co. produces main products K and W. The process also yields by-product Z.Net realizable value of by-product Z is subtracted from joint production cost of K andW. The followwing information pertains to production in July, 2019 at a joint cost of P54,000.UNITSIF PROCESSED FURTHERPRODUCT PRODUCED1,0001,500MARKET VALUE40,00035,0007,000COST AFTER SPLIT-OFFP 00KPW5003,000 3. If Lane uses the net realizable value method of allocating joint costs, how much ofthe joint cost should be allocated to product K.NRVP 18,800 KP 20,000P 26,667P 27,432a.100040 00040 0035000b.000SO35 00C.700030004 000d.3 000300079 00054 000

3. If Lane uses the net realizable value method of allocating joint costs, how much of che joint cost should be allocated to product K. P 18,800 K P 20,000 P 26,667 d. NRV 40 000 35 000 a. 1000 40 00D b. I500 SO0 35 000 7 000 3000 4 000 P 27,432

3. If Lane uses the net realizable value method of allocating joint costs, how much of che joint cost should be allocated to product K. P 18,800 K P 20,000 P 26,667 d. NRV 40 000 35 000 a. 1000 40 00D b. I500 SO0 35 000 7 000 3000 4 000 P 27,432

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Espana Co. makes one main product, Uno, and a by-product, Dos, which splits off from the main product when the work is three-fourths completed. Dos is sold without further processing and without being placed in stock. During June, 1,200 is realized from the sale of the by-product. Make the entries to record the recovery and sale of the by-product, on account, on the assumption that the recovery is treated as one of the following: a. A reduction in the cost of the main product b. Other income
Clarion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $36,000. Product Y weighs 25 pounds and product Z weighs 75 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z.
Clark Kent Inc. buys crypton for $.80 a gallon. At the end of processing in Dept. 1, crypton splits off into products plutonium, tantalum, and xenon. Plutonium is sold at the split-off point with no further processing. Tantalum and xenon require further processing before they can be sold. Tantalum is processed in Dept. 2, and xenon is processed in Dept. 3. Following is a summary of costs and other related data for the year ended December 31: No inventories were on hand at the beginning of the year, and no crypton was on hand at the end of the year. All gallons on hand at the end of the year were complete as to processing. Kent uses the net realizable value method of allocating joint costs. Required: Calculate the allocation of joint costs. Calculate the total cost per unit for each product. In examining the product cost reports, Lois Lane, Vice President—Marketing, notes that the per-unit cost of tantalum is greater than the selling price of $2.75 that can be received in the competitive marketplace. Lane wonders whether they should stop selling tantalum. How did Lane determine that the product was being sold at a loss? What per unit cost should be used in determining whether tantalum should be sold?
Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
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Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
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Cash Co makes AA and CC from a basic raw materials. For the year 2020, the all inclusive cost of the basic process amounted to P960 000 which was allocated on the basis of relative number of units produced. Additional data for the year 2020 are given below: AA CC Unit Produced 160000 80000 Unit selling price at split off P 5 7 unit selling price after additional process P 8 14 Additional Processing Cost P 640000 400000 Required The all-inclusive joint cost should be allocated to CC on what ratio (Convert to percentage and round off to two decimal places.) The all-inclusive joint cost should be allocated to AA on what ratio (Convert to percentage and round off to two decimal places.)
Manila Corporation, a manufacturing firm, has two joint products, Pure and Diluted. The Corporation records shoe that the joint production cost for the month of May 2020 amounted to P45,000. During the month, the further processing cost beyond the split-off point, needed to convert the product into … form, amounted to P240,000 for 2,400 units of Pure and P36,000 for 1,200 units of diluted. Pure sells P25 unit while Diluted sells for P50 per unit. Assuming that the company uses the net realizable value method for allocating joint production cost. Its cost allocated to Pure for the month of May would be
ALASKA Company manufactures products F, G and W from a joint process. Joint costs are allocated on the basis of relative sales value at split-off. Additional informaton for the June 20x1 production activity as follows: F G W Total Units produced 50,000 40,000 10,000 100,000 Joint costs ? ? ? P450,000 Sales value at split-off P420,000 P270,000 P60,000 P750,000 Additional costs if processed further 88,000 30,000 12,000 130,000 Sales value if processed further 538,000 320,000 78,000 936,000 Assuming that the 10,000 units of W were processed further and sold for P78,000, what was ALASKA's gross profit on this sale?
Maroon Ltd is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X. The company uses the net realizable value of its joint products to allocate joint production costs. The by-product is valued for inventory purposes at its market value less its disposal cost, and this value is used to reduce the joint production cost of P2,015,000. Information regarding the company’s August 2020 operations are presented below: In liters Y Z X Finished Goods inventory, August 1 30,000 100,000 40,000 August Sales 1,340,000 760,000 240,000 August Production 1,600,000 800,000 200,000 In Peso Further Processing cost 1,400,000 1,520,000 Final Sales value per Liter 10 14 Sales value per liter at split off 2.40 Disposal Cost per liter 0.40 Required: Calculate the by-product income Calculate the adjusted joint…