Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product
Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Benjamin Company
Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000.
| Yards | Sales price per yard at split-off |
Disposal cost per yard at split-off |
Further processing per yard |
Final sale price per yard |
|
|---|---|---|---|---|---|
| X | 1,500 | $6.00 | $3.50 | $1.00 | $7.50 |
| Z | 2,200 | 9.00 | 5.00 | 3.00 | 11.25 |
If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Benjamin Company. Using sales value at split-off, what amount of joint
Select one:
a. $2,500
b. $3,243
c. $4,000
d. $5,500
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