Please answer complete Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additionalinformation follows:UnitsProduct Produced61,60044,00035,20035,200176,000Sales Value atSplit-0ff$ 368, 000316,000212,000160,000$1,056,000If Processed FurtherAdditionalCosts$ 39,60031,60021,20013, 200$105,600Sales Values$ 402,000368, 000264, 000176, 000$1,210, 000W-10W-20W-30W-40Required:Assuming that total joint costs of $443,520 were allocated using the sales value at split-off (net realizable value method), whatjoint costs were allocated to each product? (Do not round intermediate calculations.)Joint CostsAllocatedProduct NRV at Split-OffW-10W-20W-30W-40

Allocation of joint cost using net realizable value method: The allocation under above method…

Answered: Required: Assuming that total joint…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000       240,000 Sales value before additional processing         240000 100,000 60,000           400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000           470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $      56,000.00 $                336,000.00 $      36,000.00 $    366,000.00 w-20 $      40,000.00 $                288,000.00 $      28,800.00 $    336,000.00 w-30 $      32,000.00 $                192,000.00 $      19,200.00 $    240,000.00 w-40 $      32,000.00 $                144,000.00 $      12,000.00 $    160,000.00 $    160,000.00 $                960,000.00 $      96,000.00 $ 1,102,000.00 Required :- Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)? Explain. Does your answer depend on the method used to allocate the joint cost? Why?
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $      56,000.00 $                336,000.00 $      36,000.00 $    366,000.00 w-20 $      40,000.00 $                288,000.00 $      28,800.00 $    336,000.00 w-30 $      32,000.00 $                192,000.00 $      19,200.00 $    240,000.00 w-40 $      32,000.00 $                144,000.00 $      12,000.00 $    160,000.00 $    160,000.00 $                960,000.00 $      96,000.00 $ 1,102,000.00 Required :-Assuming that total joint costs of $384,000 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product?
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $ 56,000.00 $ 336,000.00 $ 36,000.00 $ 366,000.00 w-20 $ 40,000.00 $ 288,000.00 $ 28,800.00 $ 336,000.00 w-30 $ 32,000.00 $ 192,000.00 $ 19,200.00 $ 240,000.00 w-40 $ 32,000.00 $ 144,000.00 $ 12,000.00 $ 160,000.00 $ 160,000.00 $ 960,000.00 $ 96,000.00 $ 1,102,000.00 Required:-Assuming that total joint costs of $384,000 were allocated using the physical quantities method, what joint costs were allocated to each product?
Agao Chemical Company manufactures three chemicals (NY29, TX38, and CA55) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: NY29 TX38 CA55 Sales value at split-off point P5,000 P16,000 P12,000 Allocated joint costs P6,000 P6,000 P6,000 Sales value after further processing P9,000 P20,000 P18,000 Cost of further processing P2,000 P5,000 P3,000 For which product(s) above would it be more profitable for Agao to sell at the split-off point rather than process further?
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the entity uses average unit costs method in joint products and the reversal costs method in by products, what is the total unit cost of Product B? P10.42 P10.49 P10.92 P11.00
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the entity uses average unit costs method in joint products and the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product A? P11.50 P12.16 P12.21 P12.26
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the entity uses average unit costs method in joint products, the reversal costs method in by products and there are no inventory on hand, what is the total net profit? P432,836 P438,300 P438,589 P439,026
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the entity uses average unit costs method in joint products and the reversal costs method in by products, what is the total cost of goods sold of main products? P478,474 P479,465 P481,164 P483,011
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the by-products are presented as other income, what is the total amount of net sales and cost of goods sold, respectively? P950,000 and P475,411 P950,000 and P483,011 P957,600 and P475,411 P957,600 and P483,011
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the joint costs are allocated to by-products using the net realizable value, what is the total profit from by products? P1,500 P3,235 P3,500 P5,464
Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products? P11,136 P12,036 P13,100 P14,000

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Required: Assuming that total joint costs of $443,520 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product? (Do not round intermediate calculations.)