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. Multiple Choice O Units Sold Price (after additional processing) Separable Processing cost $ 51,150 27,900 Units Produced Total Joint Cost Sales Price at Split-off $ 35 The amount of joint costs allocated to product DBB-3 using the net realizable value method is: O O $2,250,560. $1,154,523. $1,035,989. $1,081,125. DBB-1 18,600 $ 65 $ 127,875 18,600 $833,451. DBB-2 27,900 $ 50 $ 25 DBB-3 39,900 $75 $ 73,150 39,900 $ 55 Total 86,400 $ 252,175 86,400 $ 4,120,000

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. Multiple Choice O Units Sold Price (after additional processing) Separable Processing cost $ 51,150 27,900 Units Produced Total Joint Cost Sales Price at Split-off $ 35 The amount of joint costs allocated to product DBB-3 using the net realizable value method is: O O $2,250,560. $1,154,523. $1,035,989. $1,081,125. DBB-1 18,600 $ 65 $ 127,875 18,600 $833,451. DBB-2 27,900 $ 50 $ 25 DBB-3 39,900 $75 $ 73,150 39,900 $ 55 Total 86,400 $ 252,175 86,400 $ 4,120,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 3CMA: Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses...

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Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses the physical volume method to allocate joint costs of 22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? a. B-40 only b. J-60 only c. H-102 only d. B-40 and H-102 only
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