Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 10, Problem 12PB
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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $24,000. Product Y weighs 20 pounds and product Z weighs 80 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.
Product Y allocation
?
Product Z allocation
?
Buling Inc. has two joint products, Tagiptip and Kugan, and uses the net realizable value method of allocating joint costs. The total joint costs for May amounted to P60,000. During the month, additional processing costs after split-off were P32,000 for Tagiptip and P48,000 for Kugan. Lego produced 16,000 units of Tagiptip and 8,000 units of Kugan during the month. The sales value of Tagiptip is P100 per unit and for Kugan is P200 per unit. The portion of Joint costs allocated to Kugan during the month is:
Allison, Inc., produces two products, X and Y, in a single joint process. Last month the joint costs were P75,000 when 10,000 units of Product X and 15,000 units of Product Y were produced. Addi-tional processing costs were P15,000 for Product X and P10,000 for Product Y. Product X sells for P10, and Product Y sells for P5. The joint cost allocations to Products X and Y respectively using the net realizable value method would be:
a. P30,000; P45,000
b. P42,500; P32,500
c. P42,857 ; P32,143
d. P45,000 ; P30,000
e. none of the above.
Chapter 10 Solutions
Principles of Accounting Volume 2
Ch. 10 - ______ are the costs associated with not choosing...Ch. 10 - Which type of incurred costs are not relevant in...Ch. 10 - The managerial decision-making process has which...Ch. 10 - Which of the following is not one of the five...Ch. 10 - Which of the following is sometimes referred to as...Ch. 10 - Jansen Crafters has the capacity to produce 50,000...Ch. 10 - ______ is the act of using another company to...Ch. 10 - Which of the following is a disadvantage of...Ch. 10 - Which of the following is not a qualitative...Ch. 10 - Which of the following is one of the two...
Ch. 10 - When should a segment be dropped? A. only when the...Ch. 10 - Youngstown Construction plans to discontinue its...Ch. 10 - Mallorys Video Supply has changed its focus...Ch. 10 - A company produces two products. E and F in...Ch. 10 - When operating in a constrained environment, which...Ch. 10 - Your roommate at school believes that all fixed...Ch. 10 - Explain how to differentiate short-term decisions...Ch. 10 - Felipes Restaurant and Pie Shop needs help...Ch. 10 - What factors must any company consider before...Ch. 10 - What are some of the qualitative issues that a...Ch. 10 - In The Trouble with Outsourcing, a Schumpeter...Ch. 10 - Many outsourced jobs have resulted in offshoring...Ch. 10 - What type of qualitative issues should management...Ch. 10 - In the decision by a grocery company that is...Ch. 10 - What is of key importance for a company whose...Ch. 10 - What is a general rule to remember with respect to...Ch. 10 - Garrison Boutique, a small novelty store, just...Ch. 10 - Derek DingIer conducts corporate training seminars...Ch. 10 - Bridget Youhzi works for a large firm. Her alma...Ch. 10 - Zena Technology sells arc computer printers for...Ch. 10 - Shelby Industries has a capacity to produce 45.000...Ch. 10 - Reubens Deli currently makes rolls for deli...Ch. 10 - Almond Treats manufactures various types of...Ch. 10 - Party Supply is trying to decide whether or not to...Ch. 10 - Underground Food Store has 4,000 pounds of raw...Ch. 10 - Ralston Dairy gathered this data about the two...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Ella Maksimov is CEO of her own marketing firm....Ch. 10 - You are trying to decide whether to take a job...Ch. 10 - You are working for a large firm that has asked...Ch. 10 - Dimitri Designs has capacity to produce 30,000...Ch. 10 - Aspen Enterprises makes award pins for various...Ch. 10 - Country Diner currently makes cookies for its...Ch. 10 - Oat Treats manufactures various types of cereal...Ch. 10 - The Party Zone is trying to decide whether or not...Ch. 10 - Berettis Food Mart has 6,000 pounds of raw pork...Ch. 10 - Balcom Dairy gathered this data about the two...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Artisan Metalworks has a bottleneck in their...Ch. 10 - Syntech makes digital cameras for drones. Their...Ch. 10 - Marcotti Cupcakes bakes and sells a basic cupcake...Ch. 10 - Ken Owens Construction specializes in small...Ch. 10 - Boston Executive. Inc., produces executive...Ch. 10 - Gent Designs requires three units of part A for...Ch. 10 - Trifecta Distributors has decided to discontinue...Ch. 10 - Extreme Sports sells logo sports merchandise. The...Ch. 10 - Hong Publishing has purchased Lang Publishing....Ch. 10 - Clarion Industries produces two joint products, Y...Ch. 10 - Quality Clothing, Inc., produces skorts and jumper...Ch. 10 - Ac Gems in the Rough, a jewelry company, the...Ch. 10 - Sports Specialists makes baseballs and softballs...Ch. 10 - Variety Artisans has a bottleneck in their...Ch. 10 - Mortech makes digital cameras for drones. Their...Ch. 10 - Cinnamon Depot bakes and sells cinnamon rolls for...Ch. 10 - Myrna White is a mobile housekeeper. The price for...Ch. 10 - Blake Cohen Painting Service specializes in small...Ch. 10 - Regal Executive, Inc., produces executive motor...Ch. 10 - Remarkable Enterprises requires four units of part...Ch. 10 - Colin OShea has a carpentry shop that employs 4...Ch. 10 - ZZOOM, Inc., has decided to discontinue...Ch. 10 - Strawberry Sweet Company makes a variety of jams...Ch. 10 - Laramie Industries produces two joint products, H...Ch. 10 - Jamboree Outfitters, Inc., produces pocket knives...Ch. 10 - Daisy Hernandez sells girls christening dresses...Ch. 10 - Dr. Detail is a mobile car wash. The price for a...Ch. 10 - At Stardust Gems, a faux gem and jewelry company,...Ch. 10 - Sports Butts makes basketballs and footballs in a...Ch. 10 - Seda Sarkisian makes wedding cakes from her home....Ch. 10 - You are a management accountant for Time Treasures...Ch. 10 - Brindis Babysitting Center currently rents a 1200...Ch. 10 - Akimotos Bicycle Co assembles three types of...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Basic accounting equation (Learning Objective 5) 10-15 min. Hanson Corp. ? 44,900 + 10,300 Tiny Tots Daycare In...
Financial Accounting, Student Value Edition (4th Edition)
Color Explosion prepares and packages paint products. Color Explosion has two departments: Blending and Packagi...
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
A bond with a face value of 250,000 and a quoted price of 98 has a selling price of a.250,098. b.245,000. c.255...
Financial Accounting (12th Edition) (What's New in Accounting)
What are the four elements of the budgeting cycle?
Cost Accounting (15th Edition)
Communication Activity 9-1
In 150 words or fewer, explain the different methods that can be used to calculate d...
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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.arrow_forwardLeMoyne 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.arrow_forwardOakes 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?arrow_forward
- 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.arrow_forwardVenezuela 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.)arrow_forwardA 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?arrow_forward
- 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 onlyarrow_forwardTucariz 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.arrow_forwardMan OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing 29,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for 4 per door handle and the curved style for 2 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.arrow_forward
- Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that can be used to produce Products X and Y. Which of the following alternatives should Eagle Brand accept to maximize the contribution margin? a. 100 units of Product Y. b. 250 units of Product X. c. 200 units of Product X and 20 units of Product Y. d. 200 units of Product X and 50 units of Product Y.arrow_forwardColumbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had sales and variable costs of 500,000 and 225,000, respectively, and Seaside had sales and variable costs of 800,000 and 475,000, respectively. Salem had direct fixed production and administrative expenses of 60,000 and 35,000, respectively, and Seaside had direct fixed production and administrative expenses of 80,000 and 45,000, respectively. Fixed costs that were common to both divisions and couldnt be allocated to the divisions in any meaningful way were selling, 33,000, and administration, 27,000. Prepare a segmented income statement by division for March.arrow_forwardAdirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are then made into baseball bats. The company allocates joint costs to the joint products on the basis of the sales value at the split-off point. During the month of May, Adirondack incurred total joint production costs of $300,000 in producing the following: Make the journal entry to transfer the finished lumber to separate work in process inventory accounts for each product. What would be the allocation of the joint costs if the company were to use the physical measure method?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Incremental Analysis - Sell or Process Further; Author: Melissa Shirah;https://www.youtube.com/watch?v=7D6QnBt5KPk;License: Standard Youtube License