The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costswere $195,000. Additional information follows.Units Sales Value atSplit-Off$256,000Product Produced81,00056,70024,300ΚΑΙKBKC224,000160,000If Processed FurtherSales Values Additional Costs$54,00042,00035,000$330,000270,000240,000Required:a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost ofproduct KA (including $54,000 if processed further)?b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the totalcost of product KB (including the $42,000 if processed further)?Complete this question by entering your answers in the tabs below.Required A Required BAssuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was thetotal cost of product KB (including the $42,000 if processed further)? (Do not round intermediate calculations.)Total cost of product KB< Required ARequired B > The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costswere $195,000. Additional information follows.UnitsProduct Produced81,00056,70024,300ΚΑΙKBKCSales Value atSplit-Off$256,000224,000160,000Required A Required BIf Processed FurtherTotal cost of product KASales Values Additional Costs$54,00042,00035,000Required:a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost ofproduct KA (including $54,000 if processed further)?b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the totalcost of product KB (including the $42,000 if processed further)?$330,000270,000240,000Complete this question by entering your answers in the tabs below.Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total costof product KA (including $54,000 if processed further)? (Do not round intermediate calculations.)< Required ARequired B >

Two different allocation method are used for joint cost distribution between the three products. The…

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $195,000. Additional Information follows. Units Sales Value at Product Produced 81,000 56,700 24,300 ΚΑΙ KB KC Split-Off $256,000 224,000 160,000 If Processed Further Sales Values Additional Costs $54,000 42,000 35,000 $330,000 270,000 240,000 Required: a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $54,000 if processed further)? b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $42,000 if processed further)?

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $195,000. Additional Information follows. Units Sales Value at Product Produced 81,000 56,700 24,300 ΚΑΙ KB KC Split-Off $256,000 224,000 160,000 If Processed Further Sales Values Additional Costs $54,000 42,000 35,000 $330,000 270,000 240,000 Required: a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $54,000 if processed further)? b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $42,000 if processed further)?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...

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Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
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?
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for 2.000. Processing costs are 3,000 to process the 1,000 gallons of Duointo 800 gallons of Big and 200 gallons of Mini. The selling price is 9 per gallon for Big and4 per gallon for Mini. If the physical units method is used to allocate joint costs to the finalproducts, the total cost allocated to produce Mini is: a. 500. b. 4,000. c. 1,000. d. 4,500.
Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company incurred costs of $66,000. Product H weighs 44 pounds and product C weighs 66 pounds. Product H sells for $250 per pound and product C sells for $295 per pound. Based on a physical measure of output, allocate joint costs to products H and C.
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Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
Clarion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $36,000. Product Y weighs 25 pounds and product Z weighs 75 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z.
Board-It, Inc., produces the following types of 2 4 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of 710 per batch. Using the physical units method, allocate the joint production cost to each product.
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 production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?