PLEASE SHOW YOUR SOLUTIONS. ASAP THANKS. #7,8 From a particular joint process, Watkins Company produces three products, X, Y, andZ. Each product may be sold at split-off or processed further. Additional processingrequires no special facilities, and production costs of further processing are entirelyvariable and traceable to the products involved. In 2016, all three products wereprocessed beyond split-off. Joint production costs for the year was P60,000. Salesvalue and costs for 2019 are as follows:6,000P25,000Y4,000P41,0002,000P24,000Units producedSales values at split-offIf processed furtherFinal sales value42,0009,00045,0007,00032,0008,000Separable costsJoint costs are allocated to the products in proportion to the relative physical volume ofoutput.7. The relevant unit cost for a decision to sell Product Z or process further isР 5.00P 12.00а.b.с. Р 4.00d.Р 9.008. See item 7. To maximize operating income, Watkins should subject the followingproducts to additional processing:Х onlyX, Y, and ZY and Z onlyd. Z only/ a.b.с.

From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split-off. Joint production costs for the year was P60,000. Sales value and costs for 2019 are as follows: 6,000 P25,000 4,000 P41,000 2,000 P24,000 Units produced Sales values at split-off If processed further Final sales value 42,000 9,000 45,000 7,000 32,000 8,000 Separable costs Joint costs are allocated to the products in proportion to the relative physical volume of output. 7. The relevant unit cost for a decision to sell Product Z or process further is P 5.00 P 12.00 P 4.00 d. а. b. P 9.00 8. See item 7. To maximize operating income, Watkins should subject the following products to additional processing: X only b. X, Y, and Z Y and Z only d. Z only / a. с.

From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split-off. Joint production costs for the year was P60,000. Sales value and costs for 2019 are as follows: 6,000 P25,000 4,000 P41,000 2,000 P24,000 Units produced Sales values at split-off If processed further Final sales value 42,000 9,000 45,000 7,000 32,000 8,000 Separable costs Joint costs are allocated to the products in proportion to the relative physical volume of output. 7. The relevant unit cost for a decision to sell Product Z or process further is P 5.00 P 12.00 P 4.00 d. а. b. P 9.00 8. See item 7. To maximize operating income, Watkins should subject the following products to additional processing: X only b. X, Y, and Z Y and Z only d. Z only / a. с.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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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.
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.
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.)
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.
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?
LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X–$30, Product Y–$100, and Product Z–$90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales values at split-off. Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.
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?
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?
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
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 processing cost beyond the split-off point, needed to convert the product into … form, amounted to P240,000 for 2,400 units of Pure and P36,000 for 1,200 units of diluted. Pure sells P25 unit while Diluted sells for P50 per unit. 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
ABC Company operates a production process to convert a single material into three separate items, referred to as items A, B and C. Products A and B are ready for sale immediately upon split-off without further processing. Product C, however, is processed further before being saleable. During 2022, the selling prices of the items and the total amounts sold were as follows: Product A – 168 units at P1,200 per unit Product B – 480 units at P900 per unit Product C – 672 units at P600 per unit Total manufacturing costs for the year amounted to P900,000 which includes further processing costs of product C of P200,000. There were no beginning inventories while a physical count revealed the following unsold units at the end of 2022: A, 132 units, B, 120 units, C, 28 units. How much is the ending inventory to be reported for product A using the physical measures approach? How much is the ending inventory to be reported for product B using the physical measures approach?
ABC Company operates a production process to convert a single material into three separate items, referred to as items A, B and C. Products A and B are ready for sale immediately upon split-off without further processing. Product C, however, is processed further before being saleable. During 2022, the selling prices of the items and the total amounts sold were as follows: Product A – 168 units at P1,200 per unit Product B – 480 units at P900 per unit Product C – 672 units at P600 per unit Total manufacturing costs for the year amounted to P900,000 which includes further processing costs of product C of P200,000. There were no beginning inventories while a physical count revealed the following unsold units at the end of 2022: A, 132 units, B, 120 units, C, 28 units 1. How much is the allocated joint costs of product C using the approximate net realizable value approach? 2. How much is the gross profit to be recognized in 2022 using the approximate net realizable value approach?