Double Company produces thee products - DB01. DO0 2, and DBB 3 from o joint process. Each product may be sold at the spit off point or processed further Additional processingrequires no special facilities, and production costs of further processing are entrely variable and traceable to the products involved. Key information obout Double's production sales, andcosts foitowspee-226, 100Total1,600units sold17,400$ 65$ 124,00012, 40038,100Peice (after additional processing)Separable Processing costUnits ProducedTotal Joint costSales Price at split-off5 50$58,00026,100$ 75$267,0001,600$3,670,000S.00,00030,100$ 25$ 55$35he amount of joint costs allocated to product DB0-1 usng the physical measure method isMultiole Choice

Joint cost allocated to DDB-1 = total joint cost / total units * units of DDB-1

Answered: be-1 17,400 $65 pe-2 Total 26,100 $50…

be-1 17,400 $65 pe-2 Total 26,100 $50 38,100 $ 75 s00,000 1,600 s 124,000 17,400 $58,000 5267,000 1,600 $3,60,000 26,100 3, 100 $25 $35 $5 g the physical measure method

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 1CE: Thomas Corporation produces heating units. The following values apply for a part used in their...

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Thomas Corporation produces heating units. The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = 45 C = 4.50 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total cost associated with an order size of 250 units. 2. Calculate the EOQ and its associated ordering cost, carrying cost, and total cost. Compare and comment on the EOQ relative to the current order quantity. 3. What if Thomas enters into an exclusive supplier agreement with one supplier who will supply all of the demands with smaller, more frequent orders? Under this arrangement, the ordering cost is reduced to 0.45 per order. Calculate the new EOQ and comment on the implications.
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?
ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Products Sales Value at Split-off Additional Processing Costs Final Sales Value A P300,000 P130,000 420,000 B 120,000 100,000 230,000 C 250,000 140,000 400,000 P670,000 P370,000 P1,050,000 To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 25,000 36,000 77,000 Price (after addt’l processing) $ 30 $ 15 $ 40 Separable Processing cost $ 179,000 $ 72,000 $ 107,000 $ 358,000 Units Produced 16,000 25,000 36,000 77,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
Fundador Inc. manufactures X product from a process that yields a by-product called Z. The by-product requires additional processing cost of P30,000. The by-product will require selling and administrative expenses totaling P20,000. It is Fundador’s accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split off Units Sold X 100,000 P50 60,000 Z 8,000 10 8,000 The Joint costs incurred up to split-off point are: Direct materials P2,000,000 Direct labor 800,000 Factory Overhead…
Fundador Inc. manufactures X product from a process that yields a by-product called Z. The by-product requires additional processing cost of P30,000. The by-product will require selling and administrative expenses totaling P20,000. It is Fundador’s accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split off Units Sold X 100,000 P50 60,000 Z 8,000 10 8,000 The Joint costs incurred up to split-off point are: Direct materials P2,000,000 Direct labor 800,000 Factory Overhead 200,000 The Selling and Administrative expense of Fundador Inc. for the year ended December…
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
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 24,000 36,000 76,000 Price (after addt’l processing) $ 65 $ 50 $ 75 Separable Processing cost $ 110,000 $ 44,000 $ 66,000 $ 220,000 Units Produced 16,000 24,000 36,000 76,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further processing before it is in a saleable condition. There are no opening inventories and no work in progress. The following data are available for last period: $ Total joint production costs 384,000 Further processing costs (product H) 159,600 Product Selling price Sales Production per unit Units Units G $0.84 400,000 412,000 H $1.82 200,000 228,000 Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product H for last period?
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 11,000 17,000 24,000 52,000 Price (after addt’l processing) $ 10 $ 25 $ 30 Separable Processing cost $ 282,000 $ 114,000 $ 169,000 $ 565,000 Units Produced 17,600 31,000 39,400 88,000 Total Joint Cost $ 4,800,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest…
English company operates two segments, the Reading Segment, and the Language Segment. Reading Segment produces component A that is necessary in the processing of the products offered by Language Segment but can also be sold to outside customers. English 10,000 undecided to transfer to from Reading to Language at with special modification to Language at P70.00 Reading currently sells the component A to external customers at P120.00. Variable Cost per unit is P43 and fixed cost per unit based on normal operations is at P12. Reading is currently operating at full capacity and the VC in producing component A is at P68. How much is the minimum Transfer price that Reading can accept?
Double Company produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 20,000 30,000 42,000 92,000 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 150,000 $ 84,000 $ 106,000 $ 340,000 Units Produced 20,000 30,000 42,000 92,000 Total Joint Cost $ 3,800,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-1 using the physical measure method is: