0 Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $190,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product Sales Value at Split-Off $ 228,000 1 2 3 95,000 57,000 $ 380,000 Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Allocated Joint Cost $ Units at Split-Off 740 0 1,295 1,665 3,700

0 Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $190,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product Sales Value at Split-Off $ 228,000 1 2 3 95,000 57,000 $ 380,000 Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales value of product 3 is $3,800 instead of $57,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Allocated Joint Cost $ Units at Split-Off 740 0 1,295 1,665 3,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $120,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $180,000 170 2 $36,000 510 3 $24,000 1,020 $240,000 1,700 Assume that the total sales value at the split-off point for product 1 is $84,000 instead of $180,000 and the sales value of product 3 is $2,400 instead of $24,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method?
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201Awere 500,000 and were allocated using relative sales value at the split-off point method.Each product may be sold at its split-off point or processed further. Additional processing costs are entirelyvariable.ProductsSales Value atSplit-offAdditionalProcessingCostsFinal SalesValueA P300,000 P130,000 420,000B 120,000 100,000 230,000C 250,000 140,000 400,000P670,000 P370,000 P1,050,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further,respectively?b. If the alternative were to sell at split-off point or to process further all products, which alternativewould be recommended?
The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product 1 2 Sales Value at Split-Off $ 181,500 Product 1 2 3 99,000 49,500 $ 330,000 Assume that the total sales value at the split-off point for product 1 is $66,000 instead of $181,500 and the sales value of product 3 is $3,300 instead of $49,500. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Units at Split-Off 320 960 1,920 3,200 Allocated Joint Cost
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point method. Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Additional Sales Value at Final Sales Products Processing Costs P130,000 100,000 140,000 Split-off Value P300,000 120,000 250,000 420,000 230,000 A B 400,000 P1,050,000 P670,000 P370,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? b. If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?
ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
The ABC Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total P90,000 per production run. The unit selling price for A is P4 and for B is P3.80 at the split-off point. However, B can be processed further at a total cost of P60,000 and then sold for P7.00 per unit. 6) In a decision between selling B at the split-off point or processing
VE The G-Lab Company produced three joint products at a joint cost of $150,000. Two of these products were processed further. Production and sales were: K Product Sales Additional Processing Costs 200,000 0 100,000 If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product A? (Do not round intermediary calculations. Round final answer to the nearest cent) A B с Weight 100,000 lbs 200,000 lbs 300,000 lbs. OA $25,000.00 B. $100,000.00 OC. $75,000.00 OD. $81,666.67 245,000 30,000 175,000
2. BZD Company manufactures products A and B from a joint process which also yields a by- product, X. BZD accounts for the revenues from its by-product sales as a deduction from the cost of goods sold of its main products. Additional information is as follows: A B X TOTAL Units produced 15,000 9,000 6,000 30,000 Joint costs ? ? ? P264,000 Sales value at split-off P290,000 P150,000 P 10,000 P450,000 Assuming that joint product costs are allocated using the relative sales value at split-off approach, what were the joint costs allocated to products A_____________________ B___________________ X__________________
ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Products Sales Value at Split-off Additional Processing Costs Final Sales Value A P300,000 P130,000 420,000 B 120,000 100,000 230,000 C 250,000 140,000 400,000 P670,000 P370,000 P1,050,000 To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?
Joint products A and B emerge from common processing that costs $114,000 and yields 3,800 units of Product A and 2,600 units of Product B. Product A can be sold for S 260 per unit. Product B can be sold for $190 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values? a. $71000 b. $76000 c. $73500 d. $66000
Two products (W and X) are created from a joint process. Both products can be sold immediately after split-off. There are no opening inventories or work in progress. The following information is available for last period: Total joint production costs $776,160 Product Production units Sales units Selling price per unit W 12,000 10,000 $10 X 10,000 8,000 $12 Using the sales value method of apportioning joint production costs, what was the value of the closing inventory of product X for last period? A $310,464 B $388,080 C $155,232 D $77,616
JOINT PRODUCTS: Machintosh Company produces two products from a common input. Common Input Question 1 The sales value of Product A at the split-off point (without further processing) is P 60,000. The sales value of Product B at the split-off point (without further processing) is P 120,000. Product A Product B *Note: Split-off point is the juncture in the process when the products become separately identifiable. If Product A will be processed further after the split-off point, it will incur a processing cost of P 22,197, but its sales value after further processing will now be P 96,829. What will be the profit for Product A after further processing?