After allocating the joint process costs to its two joint products, Waterway Co. reports gross margin percentages and 35% for Product B. Sales reported for each product were $23,000 for Product A and $65,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Product A Allocated joint costs $ 17,250 $ Product B 42.250 Assuming Waterway used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) Proportion of joint costs assigned to product B 71,01 %

After allocating the joint process costs to its two joint products, Waterway Co. reports gross margin percentages and 35% for Product B. Sales reported for each product were $23,000 for Product A and $65,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Product A Allocated joint costs $ 17,250 $ Product B 42.250 Assuming Waterway used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) Proportion of joint costs assigned to product B 71,01 %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12PB: Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company...

See similar textbooks

Similar questions

LeMoyne 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.
Oakes 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?
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.
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.
Venezuela 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.)
A 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?
After allocating the joint process costs to its two joint products, Allomar Co. reports gross margin percentages of 30% for Product A and 40% for Product B. Sales reported for each product were $25,000 for Product A and $60,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Allocated joint costs Product A Product B Assuming Allomar used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) Proportion of joint costs assigned to product B %
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company Incurred costs of $36,000. Product Y weighs 15 pounds and product Z weighs 85 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. B on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation $ Product Z allocation $ D
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number ofUnits Produced Selling Priceat Split-Off Selling Priceafter Processing AdditionalProcessing Costs D 4,470 $10.20 $15.10 $15,823 E 5,500 11.60 16.60 19,800 F 1,710 19.70 22.80 8,401 (b1)Determine the incremental profit (loss) of each product(s). Product D Product E Product F Incremental profit (loss) $ $ $ (b2)Which product(s) should be processed further and which should be sold at the split-off point? Product D…
Fundador Inc. makes two products, Wet and Dry, from a joint operating process. For the month of May 2021, the total joint costs of processing was P120,000 and the costs of further processing after the point of split-off, as well as other relevant data, are as follows: The company uses the net realizable value method for allocating the joint costs of processing. For the month of may 2021, the joint costs allocated to product Wet was: A. 60,000 B. 66,000 C. 72,000 D. 80,000
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $305,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Product A Selling Price $11.00 per pound $5.00 per pound $ 17.00 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: B C Additional Processing Costs $ 50,340 $71,170 $ 25,600 Quarterly Output 11,200 pounds 17,600 pounds 2,400 gallons Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Product A Selling Price $ 22.00 per pound $16.00 per pound. $28.00 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: B C Quarterly Output 13,400 pounds 20,900 pounds 4,600 gallons Additional Processing Costs $ 75,970 $ 109,395 $ 48,260 Selling Price $ 27.30 per pound $ 22.30 per pound. $36,30 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing…