Soy Products produces two products, Soyburgers and Soy steaks, in a single process. In 2016, the joint costs of this process were $36,000. In addition, 20,000 pounds of soyburgers and 10,000 pounds of soy steaks were produced. Separable processing costs beyond the split-off point were: soyburgers, $7,500; soy steaks, $4,500. Soyburgers sells for $2 per pound; Soy steaks sells for $4 per pound. Required: Allocate the joint costs using the net realizable value method. Allocate the joint costs using the physical units method.
Soy Products produces two products, Soyburgers and Soy steaks, in a single process. In 2016, the joint costs of this process were $36,000. In addition, 20,000 pounds of soyburgers and 10,000 pounds of soy steaks were produced. Separable processing costs beyond the split-off point were: soyburgers, $7,500; soy steaks, $4,500. Soyburgers sells for $2 per pound; Soy steaks sells for $4 per pound. Required: Allocate the joint costs using the net realizable value method. Allocate the joint costs using the physical units method.
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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Soy Products produces two products, Soyburgers and Soy steaks, in a single process. In 2016, the joint costs of this process were $36,000. In addition, 20,000 pounds of soyburgers and 10,000 pounds of soy steaks were produced. Separable
Required:
- Allocate the joint costs using the net realizable value method.
- Allocate the joint costs using the physical units method.
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