Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF1 28,700 ? $ 573,750 Joint Cost DF2 19,700 ? $191,250 ВР 16,700 ? $ 103,700 Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 65,100 $ 561,700 $ 868,700

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 12PB: Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company...
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Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company
accounts for the revenues from its by-product sales as other income. Additional information follows:
Units produced
Allocated joint costs
Sales value at split-off
DF1
DF2
BP
DF1
28,700
?
Joint Cost
$573,750
DF2
19,700
?
$191,250
BP
16,700
?
$ 103,700
Total
Required:
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to
each of the joint products DF1 and DF2 and to the by-product, BP?
Note: Do not round intermediate calculations.
65,100
$ 561,700
$ 868,700
Transcribed Image Text:Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF1 28,700 ? Joint Cost $573,750 DF2 19,700 ? $191,250 BP 16,700 ? $ 103,700 Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 65,100 $ 561,700 $ 868,700
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