Required informationProblem 17-30 Joint Cost Allocation; Missing Data (LO 17-4)[The following information applies to the questions displayed below.]Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost datafor July follow.Units producedJoint cost allocation.Sales value at split-offAdditional costs if processed furtherSales value if processed furtherProblem 17-30 Part 2Sales value at split-off for DeltaDeltaKappaOmegaDelta5,800$ 68,400?$ 8,800$160,000Kappa3,080Allocation ofJoint CostsOmega1,7202. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Delta?(Do not round intermediate calculations. Round your answer to the nearest dollar amount.)??$28,500$ 6,800 $ 4,800$70,000 $65,000Total10,600$ 96,000$190,000$ 20,400$295,0003. Use the net-realizable-value method to allocate the joint production costs to the three products. (Round the calculation of "RelativeProportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.)

Joint costs are those costs which are incurred for manufacturing of two or more than two products…

Required information Problem 17-30 Joint Cost Allocation; Missing Data (LO 17-4) [The following information applies to the questions displayed below.] Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Units produced Joint cost allocation. Sales value at split-off Additional costs if processed further Sales value if processed further Problem 17-30 Part 2 Sales value at split-off for Delta Delta Kappa Omega Omega Delta 5,800 $ 68,400 1,720 ? $28,500 $ 8,800 $ 6,800 $ 4,800 $160,000 $70,000 $65,000 ? 2. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Del (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Kappa 3,080 ? ? Allocation of Joint Costs Total 10,600 $ 96,000 $190,000 $ 20,400 $295,000 3. Use the net-realizable-value method to allocate the joint production costs to the three products. (Round the calculation of "Relativ Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.)

Required information Problem 17-30 Joint Cost Allocation; Missing Data (LO 17-4) [The following information applies to the questions displayed below.] Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Units produced Joint cost allocation. Sales value at split-off Additional costs if processed further Sales value if processed further Problem 17-30 Part 2 Sales value at split-off for Delta Delta Kappa Omega Omega Delta 5,800 $ 68,400 1,720 ? $28,500 $ 8,800 $ 6,800 $ 4,800 $160,000 $70,000 $65,000 ? 2. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Del (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Kappa 3,080 ? ? Allocation of Joint Costs Total 10,600 $ 96,000 $190,000 $ 20,400 $295,000 3. Use the net-realizable-value method to allocate the joint production costs to the three products. (Round the calculation of "Relativ Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.)

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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A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs 12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if it cost 2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?
Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $154,680. Additional information is as follows: If Processed Further Product UnitsProduced Sales Value at Split-Off Sales Value Additional Costs A 7,110 $ 46,660 $ 64,435 $ 4,740 B 8,150 70,905 91,280 12,225 C 4,075 48,900 61,125 16,300 19,335 $ 166,465 $ 216,840 $ 33,265 Assuming that joint product costs are allocated using the net realizable value method, what were the total costs assigned to Product B? Multiple Choice $78,110. $77,906. $77,110. $79,396.
Vicerelandu, Inc. manufactures X, Y, and Z from a joint process. Joint product costs were P60,000. Additional information are as follows:(see pic) 1. Assuming that joint costs are allocated using the physical measures (units produced) approach, what were the total costs allocated to product X ________________________ Y ______________________ Z ______________________2. Assuming that joint product costs are allocated using the relative sales value at split-off approach, what were the total costs allocated to product X_________________________ y ______________________ Z ______________________
A Chemical Company manufactures joint products Pep and Vim, and a by product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Unit Produced 5000 4000 1000 Sales price per unit 50 40 5 Further processing cost per unit 10 5 0 Selling and adm. Expense per unit 0 0 2 operating profit per unit 0 0 1 Required: The gross profit for pep is The value of Zest to deducted from the joint cost is
A Chemical Company manufactures joint products Pep and Vim, and a by-product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Units Produced 5,000 4,000 1,000 Sales price per unit 50.00 40.00 5.00 Further processing cost per unit 10.00 5.00 0.00 Selling & Adm. Expense per unit 0.00 0.00 2.00 Operating Profit per unit 0.00 0.00 1.00 The value of Zest to be deducted from the joint cost is
ACE Company makes two products A and B. They are initially processed from the same materials and then after split off, further processed separately. Additional information is as follows: A B TOTAL Final sales value Sales value at split off Cost beyond split off Joint cost prior to split off 81,000 66,000 18,000 99,000 94,000 22,000 180,000 160,000 40,000 30,000 Answer the following: 1. Compute the joint cost assigned to A and B using the Actual Net Realizable Value approach. 2. Compute the joint cost assigned to A and B using the Approximated Net Realizable Value approach.
Joint Products Tango Company produces joint products M, N, and T from a joint process. Thisinformation concerns a batch produced in April at a joint cost of $120,000:ProductUnits Producedand SoldAfter Split-OffTotal Separable Costs Total Final Sales ValueM 10,000 $10,000 $160,000N 4,000 10,000 140,000T 5,000 5,000 25,000Required How much of the joint cost should be allocated to each joint product using the net realizablevalue method?
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: DF1 DF2 BP Total Units produced 27,100 18,100 15,100 60,300 Allocated joint costs ? ? ? $ 560,100 Sales value at split-off $ 561,750 $ 187,250 $ 102,100 $ 851,100 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP?
Company produced joint products M, N and O from same raw materials with total joint costs P35,000. Other data are as follows: Quantity Produced in units (1,500; 2,500; 1,000); Unit Market value at split-off (P6; P10; P8); Final unit selling price (P10, P12, P15); Additional costs after split off (P3,000; P2,000; P5,000); Quantity Sold (1,200; 2,000; 800). Using the physical output method, what is the unit cost of Product N? P 9.00 P 7.80 P 7.00 P12.00
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201Awere 500,000 and were allocated using relative sales value at the split-off point method.Each product may be sold at its split-off point or processed further. Additional processing costs are entirelyvariable.ProductsSales Value atSplit-offAdditionalProcessingCostsFinal SalesValueA P300,000 P130,000 420,000B 120,000 100,000 230,000C 250,000 140,000 400,000P670,000 P370,000 P1,050,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further,respectively?b. If the alternative were to sell at split-off point or to process further all products, which alternativewould be recommended?
Net Realizable Value Method, Decision to Sell at Split-off or Process Further Arvin, Inc., produces two products, ins and outs, in a single process. The joint costs of this process were $60,000, and 14,000 units of ins and 36,000 units of outs were produced. Separable processing costs beyond the split-off point were as follows: ins, $102,000; outs, $450,000. Ins sell for $8.00 per unit; outs sell for $15.00 per unit. Required: 1. Allocate the $60,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Ins $fill in the blank 1 Outs $fill in the blank 2 2. Suppose that ins could be sold at the split-off point for $7.00 per unit. Should Arvin sell ins at split-off or process them further?Ins be processed further as there will be $fill in the blank 4 profit if sold at split-off.
ALASKA Company manufactures products F, G and W from a joint process. Joint costs are allocated on the basis of relative sales value at split-off. Additional informaton for the June 20x1 production activity as follows: F G W Total Units produced 50,000 40,000 10,000 100,000 Joint costs ? ? ? P450,000 Sales value at split-off P420,000 P270,000 P60,000 P750,000 Additional costs if processed further 88,000 30,000 12,000 130,000 Sales value if processed further 538,000 320,000 78,000 936,000 Assuming that the 10,000 units of W were processed further and sold for P78,000, what was ALASKA's gross profit on this sale?