Using data from the above question calculate the net realizable value at splitoff approach? Earl’s Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $9,000 in joint costs that Earl may allocate using the relative sales value at splitoff. Before splitoff, A-1 sells for $20,000 while B grade sells for $40,000. After an additional investment of $10,000 after splitoff, $3,000 for B grade and $7,000 for A-1, both the products sell for $50,000. Group of answer choices a. A-1: $4,300 B grade: $4,700 b. A-1: $0 B grade: $9,000 c. A-1: $4,500 B grade: $4,500 d. A-1: $6,000 B grade: $3,000
Using data from the above question calculate the net realizable value at splitoff approach? Earl’s Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $9,000 in joint costs that Earl may allocate using the relative sales value at splitoff. Before splitoff, A-1 sells for $20,000 while B grade sells for $40,000. After an additional investment of $10,000 after splitoff, $3,000 for B grade and $7,000 for A-1, both the products sell for $50,000. Group of answer choices a. A-1: $4,300 B grade: $4,700 b. A-1: $0 B grade: $9,000 c. A-1: $4,500 B grade: $4,500 d. A-1: $6,000 B grade: $3,000
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 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...
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- Using data from the above question calculate the net realizable value at splitoff approach?
Earl’s Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $9,000 in joint costs that Earl may allocate using the relative sales value at splitoff. Before splitoff, A-1 sells for $20,000 while B grade sells for $40,000. After an additional investment of $10,000 after splitoff, $3,000 for B grade and $7,000 for A-1, both the products sell for $50,000.
Group of answer choices
a. A-1: $4,300 B grade: $4,700
b. A-1: $0 B grade: $9,000
c. A-1: $4,500 B grade: $4,500
d. A-1: $6,000 B grade: $3,000
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