The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $193,000. Additional information follows. If Processed Further Sales value at Product Units Produced Split-off $280, 000 250, 000 190, 000 Sales Values Additional costs KA 88, 000 $370, 000 $58, 000 64, 000 28, 000 KB 310, 000 280, 000 46, 000 KC 34,000 After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $247,800 for every 28,000 units produced. Required: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? b. Which, if either, product would you recommend Kyle Company sell at split-off?

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $193,000. Additional information follows. If Processed Further Sales value at Product Units Produced Split-off $280, 000 250, 000 190, 000 Sales Values Additional costs KA 88, 000 $370, 000 $58, 000 64, 000 28, 000 KB 310, 000 280, 000 46, 000 KC 34,000 After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $247,800 for every 28,000 units produced. Required: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? b. Which, if either, product would you recommend Kyle Company sell at split-off?

Name: Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Fur
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Description: Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-8, 9)The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costswere $193,000. Additional infor

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 10MCQ

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