Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
6th Edition
ISBN: 9781260848700
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Chapter 11, Problem 47E
Net Realizable Value Method with By-Products
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for the revenues from its by-product sales as other income. Additional information follows:
Required
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product M1?
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Chapter 11 Solutions
Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
Ch. 11 - Why do companies allocate costs? What are some of...Ch. 11 - What are the three methods of allocating service...Ch. 11 - What are the similarities and differences among...Ch. 11 - What criterion should be used to determine the...Ch. 11 - What is a limitation of the direct method of...Ch. 11 - What is a limitation of the step method of...Ch. 11 - Prob. 7RQCh. 11 - Why would a number of accountants express a...Ch. 11 - Prob. 9RQCh. 11 - What is the basic difference between the...
Ch. 11 - Prob. 11RQCh. 11 - If cost allocations arc arbitrary and potentially...Ch. 11 - Prob. 13CADQCh. 11 - Prob. 14CADQCh. 11 - Prob. 15CADQCh. 11 - Prob. 16CADQCh. 11 - Prob. 17CADQCh. 11 - Prob. 18CADQCh. 11 - What are some of the factors that a company needs...Ch. 11 - Prob. 20CADQCh. 11 - Prob. 21CADQCh. 11 - Prob. 22CADQCh. 11 - How is joint cost allocation like service...Ch. 11 - Prob. 24CADQCh. 11 - In what ways is joint cost allocation similar to...Ch. 11 - Why Are Costs Allocated?Ethical Issues You are the...Ch. 11 - Cost Allocation: Direct Method Caro Manufacturing...Ch. 11 - Allocating Service Department Costs First to...Ch. 11 - Cost Allwat ion: Direct Method University Printers...Ch. 11 - Prob. 30ECh. 11 - Cost Allocation: Step Method
Refer to the data for...Ch. 11 - Cost Allocation: Reciprocal Method
Refer to the...Ch. 11 - Cost Allocation: Reciprocal Method, Two Service...Ch. 11 - Cost Allocation: Reciprocal Method
Refer to the...Ch. 11 - Prob. 35ECh. 11 - Prob. 36ECh. 11 - Prob. 37ECh. 11 - Prob. 38ECh. 11 - Prob. 39ECh. 11 - Prob. 40ECh. 11 - Net Realizable Value Method: Multiple Choice
Oak...Ch. 11 - Sell or Process Further: Multiple Choice
Refer to...Ch. 11 - Net Realizable Value Method Euclid Corporation...Ch. 11 - Estimated Net Realizable Value Method Blasto,...Ch. 11 - Net Realizable Value Method to Solve for Unknowns...Ch. 11 - Net Realizable Value Method Bixel Components...Ch. 11 - Net Realizable Value Method with By-Products...Ch. 11 - Net Realizable Value Method Deming Sons...Ch. 11 - Physical Quantities Method
Refer to the facts in...Ch. 11 - Sell or Process Further
Refer to the facts in...Ch. 11 - Physical Quantities Method The following questions...Ch. 11 - Physical Quantities Method; Sell or Process...Ch. 11 - Physical Quantities Method with By-Product...Ch. 11 - Step Method with Three Service Departments Model,...Ch. 11 - Comparison of Allocation Methods BluStar Company...Ch. 11 - Solve for Unknowns: Direct Method Franks Foods has...Ch. 11 - Solve for Unknowns: Step Method RT Renovations is...Ch. 11 - Cost Allocation: Step Method with Analysis and...Ch. 11 - Prob. 59PCh. 11 - Prob. 60PCh. 11 - Direct, Step, and Reciprocal Methods:...Ch. 11 - Cost Allocation: Step and Reciprocal Methods...Ch. 11 - Allocate Service Department Costs: Direct and Step...Ch. 11 - Prob. 64PCh. 11 - Prob. 65PCh. 11 - Prob. 66PCh. 11 - Prob. 67PCh. 11 - Prob. 68PCh. 11 - Fletcher Fabrication, Inc., produces three...Ch. 11 - Findina Missing Data: Net Realizable Value Spartan...Ch. 11 - Finding Missing Data: Net Realizable Value Blaine,...Ch. 11 - Joint Costing in a Process Costing Context:...Ch. 11 - Find Maximum Input Price: Estimated Net Realizable...Ch. 11 - Effect of By-Product versus Joint Cost Accounting...Ch. 11 - Prob. 75PCh. 11 - Prob. 76P
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- 1. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n) Select one: a. joint process. b. reduction process. c. extractive process. d. mixed cost process. 2. If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that Select one: a. assigns a proportionate amount of the total cost to each product on a quantitative basis. b. minimizes variations in unit production costs. c. maximizes total earnings. d. does not introduce an element of estimation into the process of accumulating costs for each product. 3. Scrap is defined as a Select one: a. finished unit of product that has no sales value. b. residual of the production process that can be reworked for sale as an irregular unit of product. c. residual of the production process that has no sales value. d. residual of the production process that has limited sales value.arrow_forwardProducts G and H are joint products developed from the same process with each being processed further. Joint costs are incurred until split-off, the separable costs are incurred in further refining each product. Sales values of G and H at split-off are used to allocate joint costs. If the sales value of G at split-off increases and all other costs and selling prices remain unchanged, the gross margin of A. G- decreases while H increases B. G- increases while H decreases C. G- increases and H increases D. G- decreases and H decreasesarrow_forwardSelect Manufacturing Co. produces three joint products and one organic waste byproduct. Assuming the byproduct can be sold to an outside party, what is the correct accounting treatment of the byproduct proceeds received by the firm? a. Apply sale proceeds on a prorated basis to the joint products’ sales. b. Use the sale proceeds to reduce the common costs in the joint production process. c. Apply the sale proceeds to the firm’s miscellaneous income account. d. Either “b” or “c” can be usedarrow_forward
- Using a physical measurement method, what amount of joint processing cost is allocated to product B? Using sales value at split-off, what amount of joint processing cost is allocated to Product B?arrow_forwardSelect Manufacturing Co. produces three joint products and one organic waste byproduct. Assuming the byproduct can be sold to an outside party.what is the correct accounting treatment of the byproduct proceeds received by the firm ? a.Apply sale proceeds on a prorated basis to the joint products’ sales. b.Use the sale proceeds to reduce the common costs in the joint production process. c.Apply the sale proceeds to the firm’s miscellaneous income account. d.Either “b” or “c” can be used.arrow_forwardWhich of the following methods allocates joint costs based on the potential market value at the point where the products will be separated to be processed further? a.net realizable value method b.weighted average method c.market value at split-off method d.physical units methodarrow_forward
- When management believes that there is a direct link between the joint costs incurred and the value of products before further processing takes place, the _____ is the best alternative to allocating joint costs. A.physical measures methodB.NRV methodC.sales value at splitoff methodD.constant grossmargin percentage methodarrow_forwardJoint (common) costs in a joint production process are relevant for determining: Multiple Choice Which products should be produced internally and which products should be outsourced. The selling price of individual products produced as part of the joint production process. Which products should be produced up to the split-off point in the production process. Whether to produce at all. The set of products that should be subjected to additional processing.arrow_forwardWhich of the following choices correctly denotes the data needed to allocate joint costs under the relative-sales-value method? Sales Value of Product at Split-Off Separable Cost Sales Value of Product After Processing Beyond Split-Off A. Yes Yes No B. Yes Yes Yes C. Yes No No D. No Yes Yes E. No No Yes Choice A Choice D Choice C Choice B Choice Earrow_forward
- Using sales value at split-off, what amount of joint processing cost is allocated to Product Alpha? Using a physical measurement method, what amount of joint processing cost is allocated to Product Gamma? Using net realizable value at split-off, what amount of joint processing cost is allocated to Product Delta?arrow_forward[CPA Adapted] For purposes of allocating joint costs to joint products, the sales value at splitoff method could be used in which of the following situations? No costs Cost beyond beyond splitoff splitoff a. Yes No b. Yes No c. No Yes d. No Yesarrow_forwardIf physical output method is used in allocating joint cost, how much is Product X's share of the joint cost? a. 50,400 b. 36,000 c. 33,600arrow_forward
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