Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 17, Problem 21E
Refer to the data given in the preceding exercise.
Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Company’s joint production cost between Yummies and Crummies.
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Management Science
WonderFood is a multi-product company that makes three types of cereal. Following table shows the sales price, variable cost per unit and units sold of each product:
Type 1
Type 2
Type 3
Variable Cost
per Unit
$5
$7.50
$9
Price per Unit
$10
$13
$15
Unit Sold
2000
1500
1300
a. Calculate the separate contribution margin ratio for each & the weighted-average contribution margin ratio of the company as a whole.
Calculate product costs assuming this company decided to make and sell as much maple sugar as possible after filing all syrup orders (i.e. it regarded syrup and sugar as joint products). Use sale value method.
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees.
SellingPrice
Cost
Broad leaf trees:
Ash
$
2,080
$
1,620
Beech
2,620
1,520
Needle leaf trees:
Cedar
$
3,060
$
1,670
Fir
4,300
3,270
Fruit trees:
Apple
$
2,080
$
1,320
Cherry
2,720
1,720
The costs to sell are 10% of selling price. Required:Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to categories of trees.
Product
Cost
NRV
Lower of Cost or NRV
Ash
Beech
Broad leaf trees
Cedar
Fir
Needle leaf trees
Apple
Cherry
Fruit trees
Inventory value
Chapter 17 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Should actual or budgeted service department costs...Ch. 17 - Prob. 4RQCh. 17 - Why does dual cost allocation improve the...Ch. 17 - What potential behavioral problem can result when...Ch. 17 - Should actual or budgeted service department costs...Ch. 17 - Explain the difference between two-stage...Ch. 17 - Define the following terms: joint production...Ch. 17 - Prob. 10RQ
Ch. 17 - Describe the relative-sales-value method of joint...Ch. 17 - Define the term net realizable value, and explain...Ch. 17 - Are joint cost allocations useful? If they are,...Ch. 17 - For what purpose should the managerial accountant...Ch. 17 - Prob. 15ECh. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Tuscaloosa National Bank has two service...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Breakfasttime Cereal Company manufactures two...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Refer to the data given in Exercise 1720....Ch. 17 - Prob. 23ECh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Celestial Artistry Company is developing...Ch. 17 - Snake River Sawmill manufactures two lumber...Ch. 17 - Travelcraft Company manufactures a complete line...Ch. 17 - Biondi Industries is a manufacturer of chemicals...Ch. 17 - Berger Company manufactures products Delta, Kappa,...Ch. 17 - Prob. 31PCh. 17 - Lafayette Company manufactures two products out of...Ch. 17 - Refer to the data given in Problem 1726 for...Ch. 17 - Prob. 34PCh. 17 - Top Quality Fruit Company, based on Oahu, grows,...Ch. 17 - Prob. 36C
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