Subject: Cost Accounting#16 15. Gdyan, Inc. which manufactures products X,Y and Z from a joint process. Joint product cost wereP60,000. Additional information is provided below:If Processed FurtherAdditionalProductUnitsSalesProducedValue atSalesSplit-OffP40,00035,000Values CostsP55,00045,00030,000Assuming that joint product costs are allocated using the physical measures (units produced)6,0004,0002,000P9,0007,0005,000Yz25,000approach, what were the total cost allocated to product X?a. P27,000b. Р29,000с. Р3З,000d. P39,00016. Using the same information in No. 15, and assuming the joint product costs are allocated using therelative sales value at split-off approach, what were the total costs allocated to product Y?а. Р27,000Ь Р28,000с. Р28,350d. Р32,200

The cost function is a function that is used to show how production expense will change at different…

Answered: Assuming that joint product costs are…

Business

Accounting

Assuming that joint product costs are allocated using

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 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...

See similar textbooks

Similar questions

Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
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.
LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X–$30, Product Y–$100, and Product Z–$90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales values at split-off. Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
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.)
Two products, TB and ID, emerge from a joint process. Product TB has been allocatedP31,200 of the total joint costs of P48,000. A total of 5,000 units of product TB areproduced from the joint process. Product TB can be sold at the split-off point for P24 perunit, or it can be processed further for an additional total cost of P15,000 and then soldfor P26 per unit. If product TB is processed and sold, what would be the effect on theoverall profit of the company compared with sale in its unprocessed form directly afterthe split-off point?
CONSO Inc. manufactures joint products ALT and TAB, and a by-product DEL. Costs are assigned to the joint products by the net realizable value or final market value method which considers further processing costs in subsequent operations. It is the policy of CONSO Inc. to account for its by-product by market value or reversal cost method or deduction of net realizable value of by-product from the joint manufacturing costs of main products. The total manufacturing costs for 100,000 units were Php 1,520,000.00 during the year. Production and costs data follow: (a)Product Name: ALT, units produced:60,000, sales price per unit: Php 70.00, Further processing cost per unit Php 20.00 (b)Product Name: TAB, units produced:30,000, sales price per unit: Php 25.00, Further processing cost per unit Php 5.00 (C)Product Name: DEL, units produced:10,000, sales price per unit: Php 10.00, Further processing cost per unit Php 30.00, Selling and admin expense per unit, Php 5.00. 1.What is the value of DEL…
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201Awere 500,000 and were allocated using relative sales value at the split-off point method.Each product may be sold at its split-off point or processed further. Additional processing costs are entirelyvariable.ProductsSales Value atSplit-offAdditionalProcessingCostsFinal SalesValueA P300,000 P130,000 420,000B 120,000 100,000 230,000C 250,000 140,000 400,000P670,000 P370,000 P1,050,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further,respectively?b. If the alternative were to sell at split-off point or to process further all products, which alternativewould be recommended?
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: X Y Z Total Units produced 14,000 10,000 6,000 30,000 Allocated joint costs $ 204,000 $ 90,000 $ 66,000 $ 360,000 Sales value at split-off ? 150,000 110,000 600,000 Additional costs for further processing 38,000 30,000 22,000 90,000 Sales value if processed further 348,000 185,000 147,000 680,000 Based solely on a relevant cost analysis, which of the three products should be processed by Walman beyond the split-off point?
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: X Y Z Total Units produced 14,000 10,000 6,000 30,000 Allocated joint costs $ 204,000 $ 90,000 $ 66,000 $ 360,000 Sales value at split-off ? 150,000 110,000 600,000 Additional costs for further processing 38,000 30,000 22,000 90,000 Sales value if processed further 348,000 185,000 147,000 680,000 Product X's sales value at the split-off point is:
A Chemical Company manufactures joint products Pep and Vim, and a by product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Unit Produced 5000 4000 1000 Sales price per unit 50 40 5 Further processing cost per unit 10 5 0 Selling and adm. Expense per unit 0 0 2 operating profit per unit 0 0 1 Required: The gross profit for pep is The value of Zest to deducted from the joint cost is