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mated net realizable value method to allocate the joint cost. The cost of product E sold for the yea

mated net realizable value method to allocate the joint cost. The cost of product E sold for the yea

Cornerstones of Cost Management (Cornerstones Series)
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 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
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(ADDITIONAL INFO)

Sales 

450,000

1,440,000

2,126,250

 

Ethel uses the estimated net realizable value method to allocate the joint cost.

The cost of product E sold for the year ended July 31, 2021 is:

a. 1,470,000

b. 1,440,000

c. 990,000

d. 1,350,000

 

The cost of ending inventory for product D is:

a. 270,000

b. 225,000

c. 180,000

d. 540,000

 

The gross profit (loss) of product F is: 

a. 168,750

b. 101,250

c. 1,226,250

d. (483,750)

Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000
Transcribed Image Text:Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000
Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at split-off with no further processing. E and F require further processing before they can be sold. E is processed in department 2; and F is processed in Department 3. The following is a summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2 Department 3 Direct Materials P1,440,000
Transcribed Image Text:Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at split-off with no further processing. E and F require further processing before they can be sold. E is processed in department 2; and F is processed in Department 3. The following is a summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2 Department 3 Direct Materials P1,440,000
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