The meadows Company produced three joint.products at a joint cost of P132,000.Additional information for a recent period is as follows:ProductUnits producedSales valueSales value and additionalProcessing if ProcessedAdd'l CostsP19,80015,40011,000At split-off13,2008,8004,400P88,00077,00055,000Sales ValueP121,00099,00066,000Required: Allocate joint costs using:1. Sales value at split-off2. Physical unitsABC

Joint process is a process where manufacture of one product creates other product. Joint cost is the…

The meadows Company produced three joint.products at a joint cost of P132,000. Additional information for a recent period is as follows: Product Units produced Sales value Sales value and additional Processing if Processed Sales Value P121,000 99,000 66,000 At split-off 13,200 8,800 4,400 P88,000 77,000 55,000 Add'l Costs P19,800 15,400 11,000 Required: Allocate joint costs using: 1. Sales value at split-off 2. Physical units ABC

The meadows Company produced three joint.products at a joint cost of P132,000. Additional information for a recent period is as follows: Product Units produced Sales value Sales value and additional Processing if Processed Sales Value P121,000 99,000 66,000 At split-off 13,200 8,800 4,400 P88,000 77,000 55,000 Add'l Costs P19,800 15,400 11,000 Required: Allocate joint costs using: 1. Sales value at split-off 2. Physical units ABC

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 10PA: Clarion Industries produces two joint products, Y and Z. Prior to the split-off point, the company...

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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.
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?
LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X–$30, Product Y–$100, and Product Z–$90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales values at split-off. Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.
Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
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.)
Eren Co. recovers three product from a joint process. in October 2020 the joint cost amounted to P250,000 other data will follow using the Physical Value how much Joint Cost will be allocated to E-1? This will pertain to #3 to #11
Two products, TB and ID, emerge from a joint process. Product TB has been allocatedP31,200 of the total joint costs of P48,000. A total of 5,000 units of product TB areproduced from the joint process. Product TB can be sold at the split-off point for P24 perunit, or it can be processed further for an additional total cost of P15,000 and then soldfor P26 per unit. If product TB is processed and sold, what would be the effect on theoverall profit of the company compared with sale in its unprocessed form directly afterthe split-off point?
Cash Co makes AA and CC from a basic raw materials. For the year 2020, the all inclusive cost of the basic process amounted to P960 000 which was allocated on the basis of relative number of units produced. Additional data for the year 2020 are given below: AA CC Unit Produced 160000 80000 Unit selling price at split off P 5 7 unit selling price after additional process P 8 14 Additional Processing Cost P 640000 400000 Required The all-inclusive joint cost should be allocated to CC on what ratio (Convert to percentage and round off to two decimal places.) The all-inclusive joint cost should be allocated to AA on what ratio (Convert to percentage and round off to two decimal places.)
Icy Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs 22400 19600 42000 Sales value at split-off point 32,000 28,000 60,000 Costs of further processing 11600 25,300 36,900 Sales value after further processing 40,800 54,200 95,000 Required:a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? b) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? c) What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?d) What is the minimum amount the company…
Collie Company has a joint process that produces three products: R, D and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $300,000. Other relevant data are as follows: Product Sales Value at Split off Costs after Split off Sales Value At Completion $ $ $ R 120,000 260,000 420,000 D 80,000 $140,000 190,000 A 150,000 $190,000 350,000 Required: Determine total net income if all products are sold at split-off point. 2. Determine total net income if all products are sold after processing. 3. Using incremental analysis determine which products should be sold at split-off point and which should be processed further
Collie Company has a joint process that produces three products: R, D and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $300,000. Other relevant data are as follows: Product Sales Value Costs after Sales Value at Split-Off Split-Off at Completion $ $ $ R 120,000 260,000 420,000 D 80,000 140,000 190,000 A 150,000 190,000 350,000 Required: a) Determine total net income if all products are sold at split-off point. b) Determine total net income if all products are sold after processing. c) Using incremental analysis determine which products should be sold at split-off point and which should be processed further.
ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Products Sales Value at Split-off Additional Processing Costs Final Sales Value A P300,000 P130,000 420,000 B 120,000 100,000 230,000 C 250,000 140,000 400,000 P670,000 P370,000 P1,050,000 To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?