Joint Cost Allocation—Market Value at Split-off Method Man O’Fort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $32,000 per batch and producing 2,200 standard door handles and 1,100 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for $8 per door handle and the curved style for $4 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method. Joint Product Allocation Standard door handle $ Curved door handle Totals $
Joint Cost Allocation—Market Value at Split-off Method Man O’Fort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $32,000 per batch and producing 2,200 standard door handles and 1,100 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for $8 per door handle and the curved style for $4 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method. Joint Product Allocation Standard door handle $ Curved door handle Totals $
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 6BE: Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles...
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Joint Cost Allocation—Market Value at Split-off Method
Man O’Fort Inc. produces two different styles of door handles, standard and
Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.
| Joint Product | Allocation |
| Standard door handle | $ |
| Curved door handle | |
| Totals | $ |
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