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
Q: The JYD Company processes apples into pies, spread, and dressing. During the second quarter of 2021,…
A: Solution: Allocation of Joint Cost - NRV Method Particulars Pies Spread Dressing Total Sale…
Q: Division Y has asked Division X of the same company to supply it with 5,600 units of part L763 this…
A: Transfer price: It is the price charged to a product when the products are transferred from one…
Q: llison, Inc., produces two products, X and Y, in a single joint process. Last month the joint costs…
A: Formula: Joint allocation cost = ( Product X units * selling price per unit ) - Additional…
Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…
A: Joint Cost: Joint cost is the manufacturing cost incurred on a joint production process which takes…
Q: Toronto Company produces two products from a joint process: X and Y. The joint processing cost for…
A:
Q: Scotland Beauty Products manufactures face cream, body lotion, and liquid soap in a joint…
A: Product Unit Market value per unit Total market value Face Cream 300 $15 $4500 Body Lotion 200…
Q: NUBD Co. produces three supplemental food products simultaneously through a refining process costing…
A: The joint cost need to be allocated among the joint products to analyze the cost affect.
Q: Scotland Beauty Products manufactures face cream, body lotion, and liquid soap in a joint…
A: Formula: Market value = Cost per unit x quantity Multiplying cost per unit with quantity called…
Q: Scotland Beauty Products manufactures face cream, body lotion, and liquid soap in a joint…
A: In the case of joint costs, split off point is the point at which products can be separated and then…
Q: Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company…
A: Joint Cost - A joint cost is a cost that benefits more than one product, while a by-product is a…
Q: VXY Corporation has the following standard costs associated with the manufacture and sale of one of…
A: Variable costing is a type and method of costing in which all variable costs incurred in the…
Q: The JYD Company processes apples into pies, spread, and dressing. During the second quarter of 2021,…
A: Solution : Allocation of Joint Cost - NRV Method Particulars Pies Spread Dressing Total Sale…
Q: The JYD Company processes apples into pies, spread, and dressing. During the second quarter of 2021,…
A: Solution : Particulars Pies Spread Dressing Total Sale Value after further processing…
Q: The XYZ Corp. manufactures pots, pans, and bowls from a joint process. May production is 4,000…
A: Joint Cost: Joint cost is the manufacturing cost incurred on a joint production process which takes…
Q: Two products, LB and NH, emerge from a joint process. Product LB has been allocated P30,800 of the…
A: Given: Two Products from joint process: 1. LB = Total cost up to split off point =P30,800 (2000…
Q: Fundador Inc. makes two products, Wet and Dry, from a joint operating process. For the month of May…
A: Net realizable value = Total sales - Further process costs where, Total sales = Sales price per unit…
Q: Dorsey Company manufactures three products from a common input in a joint processing operation.…
A: The financial advantage (disadvantage) of further processing each of three products is as follows:…
Q: Dorsey Company manufactures three products from a common input in a joint processing operation.…
A: Solution: Joint cost is a cost incurred during a joint production process. It includes direct…
Q: From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data…
A: Working: In Point four we need malcom compnay to only know the target profit Profit of Malcom in…
Q: The Camp Corporation manufactures two products out of a joint process— Coma and Ultra. The joint…
A: Total cost incurred = Php250,000 Total quantity = 200,000 gallons Cost per gallon = Php250,000 /…
Q: A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and…
A: Using physical measure method, Joint processing cost = 9,000 Total units produced = 1,800 + 2,600…
Q: The JYD Company processes apples into pies, spread, and dressing. During the second quarter of 2021,…
A: Products Final Selling Price Less: Separable costs Estimated net realizable value No. of units…
Q: Dundee Company currently produces three products from a joint process. The joint process has total…
A: Joint Process Cost is irrelevant in deciding which product should be further processed as it is…
Q: Lego. Plastics, Inc. has two joint products, ABBA and ADDA, and uses the net realizable value method…
A: ABBA ADDA Sales units 16000 8000 x Sales price per unit 20 50 Total sales 320000 400000…
Q: Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currently…
A:
Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…
A: The operating income is calculated as excess of sales revenue over total cost spent.
Q: NUBD Co. produces three supplemental food products simultaneously through a refining process costing…
A: Net realizable value(NRV) is a method of allocating joint costs.The basic formula is: NRV = Sales…
Q: Company Kim manufactures Products WX and YZ using a joint process. The joint processing costs are…
A: Total market value = Php12,000 + Php8,000 = Php20,000
Q: Dorsey Company manufactures three products from a common input in a joint processing operation.…
A: To check out financial advantage and disadvantage of further processing a product or not.
Q: Allison, Inc., produces two products, X and Y, in a single joint process. Last month the joint costs…
A: Joint Product:-Joint products are those products that are produced by the business by using a single…
Q: Cleveland Corporation Manufactures Can product from a process that yields a by-product called FIZZ.…
A: Joint products are the main products manufactured in the production run. There may be other products…
Q: Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Yum, Inc. is a producer of potato chips. A single production process at Yum, Inc., yields potato…
A: Cost of goods sold Calculation of cost of goods sold is important which is determine the cost of…
Q: Model Company manufactures a single electronic product called Lastik. Lastik sells for P900 per…
A: The sales volume at break even is such sales volume at which the company is at no profit no loss…
Q: Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000.…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical…
A: Solution The relevant cost are those which cost which increases / decreases the total cost of…
Q: Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currently…
A: Differential analysis identifies the revenues and cost that differs between different alternatives.…
Q: MERGE Inc. manufactures ZEN product from a process that yields a by-product called YAN. The…
A: Gross profit for the year if the net revenue from by-product is presented as other income:
Q: Two products, Ql and VH, emerge from a joint process. Product Ql has been allocated S31,300 of the…
A: Formula: Sales Revenue = Total sale units x Selling price per unit.
Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…
A: Costs that are not attributable to a single product are called joint cost.
Q: Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to…
A: Relevant cost is of great importance to the management and are incurred when specific decisions are…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Given that: Current sales level = 100 units Revised sales units = 102 units
Q: Mitchener Corp. manufactures three products from a common input in a joint processing operation.…
A: Incremental revenues give a more complete view of a company's earnings because they are based on…
Q: Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data…
A: The number of units that are to be sold for desired profit will be that sales level at which…
Q: Angel Company expects to sell 500,000 units in 2021 at P50 per unit. Variable manufacturing costs in…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at…
A: Grey inc. is in the situation of make/buy decision. That plan under which per unit cost is less is…
Q: Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to…
A: The future differential cost is relevant in decision making and affects the decisions of the…
Q: point are: Direct Materials Php 2,000,000, Direct Labor Php 800,000, Factory Overhead Php…
A:
Q: Joie Company manufactures two joint products R and S. Joie produced 12,000 units of R with an after…
A: Solution 21: Sale value of R at split off point = P45,000 Total sale value at split off for R and…
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
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
Step by step
Solved in 2 steps
- Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing 29,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for 4 per door handle and the curved style for 2 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.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?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.)
- Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company incurred costs of $66,000. Product H weighs 44 pounds and product C weighs 66 pounds. Product H sells for $250 per pound and product C sells for $295 per pound. Based on a physical measure of output, allocate joint costs to products H and C.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?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.
- 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.Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio and Maslimpio. Pocolimpio uses two quarts of the chemical for every unit produced, and Maslimpio uses five quarts. Currently, Taylor has 6,000 quarts of the material in inventory. All of the material is imported. For the coming year, Taylor plans to import 6,000 quarts to produce 1,000 units of Pocolimpio and 2,000 units of Maslimpio. The detail of each products unit contribution margin is as follows: Taylor Company has received word that the source of the material has been shut down by embargo. Consequently, the company will not be able to import the 6,000 quarts it planned to use in the coming years production. There is no other source of the material. Required: 1. Compute the total contribution margin that the company would earn if it could import the 6,000 quarts of the material. 2. Determine the optimal usage of the companys inventory of 6,000 quarts of the material. Compute the total contribution margin for the product mix that you recommend. 3. Assume that Pocolimpio uses three direct labor hours for every unit produced and that Maslimpio uses two hours. A total of 6,000 direct labor hours is available for the coming year. a. Formulate the linear programming problem faced by Taylor Company. To do so, you must derive mathematical expressions for the objective function and for the materials and labor constraints. b. Solve the linear programming problem using the graphical approach. c. Compute the total contribution margin produced by the optimal mix.Adirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are then made into baseball bats. The company allocates joint costs to the joint products on the basis of the sales value at the split-off point. During the month of May, Adirondack incurred total joint production costs of $300,000 in producing the following: Make the journal entry to transfer the finished lumber to separate work in process inventory accounts for each product. What would be the allocation of the joint costs if the company were to use the physical measure method?
- Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for 2.000. Processing costs are 3,000 to process the 1,000 gallons of Duointo 800 gallons of Big and 200 gallons of Mini. The selling price is 9 per gallon for Big and4 per gallon for Mini. If the physical units method is used to allocate joint costs to the finalproducts, the total cost allocated to produce Mini is: a. 500. b. 4,000. c. 1,000. d. 4,500.Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?
