Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $165,000 for materials and $280,000 for conversion costs. P-11 has a sales value of $648,000 and P-12 has a sales value of $162,000. Required:Using the net realizable value method, assign costs to P-11 and P-12 for August. (Do not round intermediate calculations.)     Cost AssignedP-11 P-12

Question
Asked Nov 13, 2019
10 views

Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $165,000 for materials and $280,000 for conversion costs. P-11 has a sales value of $648,000 and P-12 has a sales value of $162,000.

 

Required:

Using the net realizable value method, assign costs to P-11 and P-12 for August. (Do not round intermediate calculations.)

      Cost Assigned
P-11  
P-12  
check_circle

Expert Answer

Step 1

In the net realizable value method, the cost of the process is allocated between different products based on the proportionate  net realizable values.

Step 2

The computation of cost assign...

help_outline

Image Transcriptionclose

Total cost to be assigned $(165000+280,000) Realizable value Cost assigned 648000 356000 (648,000/810000) *445000 89000 (162,000/810000) *445000 P-11 P-12 162000 Total 810000 445000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance $15,800 Book balance...

A: The only adjusting entry that will be passed is bank service fees for $25 charged by the bank for th...

question_answer

Q: Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bic...

A: (a) Compute the relevant cost.

question_answer

Q: Harlequin Co. has used the LIFO retail method since it began operations in early 2015 (its base year...

A: Dollar value LIFO method is a process to calculate the cost of the inventory according to last in fi...

question_answer

Q: Lease or Sell Kincaid Company owns a equipment with a cost of $366,900 and accumulated depreciation ...

A: Differential Analysis: Differential analysis refers to the analysis of differential revenue that cou...

question_answer

Q: Net Present Value-Unequal Lives Project 1 requires an original investment of $88,600. The project wi...

A: a. Compute net present value of project 1 over a four years life as shown below:

question_answer

Q: Accounting Question

A: Fixed Overhead:Fixed Overhead is a set of costs that do not vary as a result of change in activity. ...

question_answer

Q: Franklin Company's bank reconciliation as of August 31 is shown below. Bank balance $14,237 Book bal...

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...

question_answer

Q: This information relates to the Cash account in the ledger of Carla Vista Company.          Balance ...

A: Prepare the bank reconciliation at September 30, 2022.  

question_answer

Q: Vegas uses the periodic inventory system. For the current month, the beginning inventory consisted o...

A: Click to see the answer