Marin Products produces three products – DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be soldat the split-off point or processed further. Additional processing requires no special facilities, and production costs offurther processing are entirely variable and traceable to the products involved. Key information about Marin'sproduction, sales, and costs follows.DBB-1DBB-2DBB-3TotalUnits Sold16,00024,00036,00076,000Price (after addt'l processing) $65 $50 $75Separable Processing cost$110,000 $44,000 $66,000 $220,000Units Produced16,00024,00036,00076,000Total Joint Cost$3,600,000Sales Price at Split-off25 $35 $55The amount of joint costs allocated to product DBB-3 using the sales value at split-off method is (calculate all ratiosand percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

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The amount of joint costs allocated to product DBB-3 using the sales value at split-off method is ר ר

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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Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses the physical volume method to allocate joint costs of 22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? a. B-40 only b. J-60 only c. H-102 only d. B-40 and H-102 only
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?
The Cook Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. Products X and Y are ready for sale immediately upon splitoff without further processing or any other additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point. The selling prices quoted here are expected to remain the same in the coming year. During 2017, the selling prices of the items and the total amounts sold were as follows: ■ X—68 tons sold for $1,200 per ton ■ Y—480 tons sold for $900 per ton ■ Z—672 tons sold for $600 per ton The total joint manufacturing costs for the year were $580,000. Cook spent an additional $200,000 to finish product Z. There were no beginning inventories of X, Y, or Z. At the end of the year, the following inventories of completed units were on hand: X,…
Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at the split-off point or to process X-547 further into Xylene. The following data have been gathered: Selling price of X-547 Variable cost of processing X-547 into Xylene. The avoidable fixed costs of processing X-547 into Xylene. The selling price of Xylene. The joint cost of the process from which X-547 is produced. Which of the above items are relevant in a decision of whether to sell the X-547 as is or process it further into Xylene?
Double Company produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 19,800 29,700 41,700 91,200 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 136,125 $ 54,450 $ 76,450 $ 267,025 Units Produced 19,800 29,700 41,700 91,200 Total Joint Cost $ 4,360,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-3 using the net realizable value method is: Multiple Choice $2,361,764. $1,228,747. $1,107,364. $1,150,875. $890,872.
DEF Company produces three product (A, B, and C) in a joint process costing 100,000. The products can be sold as they leave the process or they can be processed further and sold. The cost accountant has provided the following information: Product Unit Volume Sales prices at split-off Separable further processing costs sales price after further processing A 3000 10 60000 25 B 4000 15 50000 30 C 8000 20 90000 35 Assume that all processing costs are variable costs. Which products should DEF Company sell at split-off, and which products should be processed further?
Double Company produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 18,200 27,300 39,300 84,800 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 125,125 $ 50,050 $ 72,050 $ 247,225 Units Produced 18,200 27,300 39,300 84,800 Total Joint Cost $ 4,040,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is: Multiple Choice $1,080,689. $766,632. $514,614. $955,500. $2,444,698.
Double Company produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,200 24,300 36,300 76,800 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 112,000 $ 46,000 $ 68,000 $ 226,000 Units Produced 16,200 24,300 36,300 76,800 Total Joint Cost $ 3,610,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-1 using the physical measure method is: Multiple Choice $752,083. $761,484. $1,706,289. $1,203,333. $1,142,227.
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 11,000 17,000 24,000 52,000 Price (after addt’l processing) $ 10 $ 25 $ 30 Separable Processing cost $ 282,000 $ 114,000 $ 169,000 $ 565,000 Units Produced 17,600 31,000 39,400 88,000 Total Joint Cost $ 4,800,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest…
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 24,000 36,000 76,000 Price (after addt’l processing) $ 65 $ 50 $ 75 Separable Processing cost $ 110,000 $ 44,000 $ 66,000 $ 220,000 Units Produced 16,000 24,000 36,000 76,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $81,000. Sales values and costs were as follows: Product Units Made Sales Price at Split-Off If Processed Further Sales Value Separable Cost X 12,000 $ 43,000 $ 81,000 $ 10,500 Y 4,000 86,000 96,000 7,500 If the joint production costs are allocated based on the relative-sales-value method, what woukd be the amount of joint cost assigned to product X ?
Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30. No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.