Bulldog Canyon Manufacturing produces three products from a joint process. The following information is availablefor the period just ended:Units producedJoint cost allocation.Sales value at split-offMultiple ChoiceO$53,280.$48,000.BDC-4BDC-510,800 25,200$33,120$57,600.?Assume that Bulldog Canyon allocates joint costs using the relative-sales-value method. What is the amount ofjoint cost allocation to BDC-4?$17,280.$187,200?BDC-654,000Not enough information is provided to determine how to allocate the joint cost.Total90,000$144,000?2 $468,000

Joint cost allocated to BDC-4 = Sales of Product BDC-4 / Total Sales * Total Joint Cost

Bulldog Canyon Manufacturing produces three products from a joint process. The following information is available for the period just ended: Units produced Joint cost allocation. Sales value at split-off Multiple Choice $53,280, BDC-4 10,800 $48,000. ? $57,600. $187,200 BDC-5 BDC-6 25,200 54,000 $33,120 Assume that Bulldog Canyon allocates joint costs using the relative-sales-value method. What is the amount of joint cost allocation to BDC-4? ? ? 2 Total 90,000 $144,000 $468,000 Not enough information is provided to determine how to allocate the joint cost.

Bulldog Canyon Manufacturing produces three products from a joint process. The following information is available for the period just ended: Units produced Joint cost allocation. Sales value at split-off Multiple Choice $53,280, BDC-4 10,800 $48,000. ? $57,600. $187,200 BDC-5 BDC-6 25,200 54,000 $33,120 Assume that Bulldog Canyon allocates joint costs using the relative-sales-value method. What is the amount of joint cost allocation to BDC-4? ? ? 2 Total 90,000 $144,000 $468,000 Not enough information is provided to determine how to allocate the joint cost.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...

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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?
Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses the physical volume method to allocate joint costs of 22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? a. B-40 only b. J-60 only c. H-102 only d. B-40 and H-102 only
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
MIX Inc. is conducting a joint process which results to three products. The following production data were provided by MIX Inc. for the current period:Product Name Units Produced Selling price per unit at split off pointAce 10,000 P40Bat 15,000 P20Can 25,000 P12Additional data for the period were provided:All the ace items were sold for a gross profit of P100,000.The joint costs were allocated using physical method.Requirement:1. What is the gross profit/(loss) if all the Bat items are sold in current year?2. Assuming the joint costs are fixed, what is the joint cost allocated to can items using the relative sales value method?
PT Agile Box produces products 1,2 and 3 from one combined product process. Information relating to the allocation of combined production costs is as follows Production Product Points / Market / unit Volume Units price 1.200 unit 3 200.000 600 unit 250.000 3 500 unit 4 350.000 Total 2.300 unit Based on this data, you allocate a joint production cost of IDR 345,000,000 to each product and calculate the cost / unit of each product if PT DZAKI uses the following alternatives: a. Average unit method b. Weighted average method (based on points /units) 2. 1, 2.
Bee Dee Fee Company manufactures three products: A, B and C from a joint process. The following information is available for the year 2010: A B C Total Units produced Joint cost allocation Sales value at split-off 12,000 ? 208,000 28,000 36,800 ? 60,000 ? ? 100,000 160,000 520,000 Answer the following: 1. Allocate the joint costs using the Physical Unit Method 2. Allocate the joint costs using the Relative Sales Value Method
A company manufactures two joint products at a joint cost of 1,000. These products can be sold at split-off, or when further processed at an additional cost, sold as higher quality items. The decision to sell at split-off or further process should be based on the: A. allocation of the 1,000 joint cost using the quantitative unit measure B. assumption that the 1,000 joint cost is irrelevant C. allocation of the $1,000 joint cost using the relative sales value approach D. assumption that the 1,000 joint cost must be allocated using a physical-measure approach E. allocation of the 1,000 joint cost using any equitable and rational allocation basis
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 %
ACE Company makes two products A and B. They are initially processed from the same materials and then after split off, further processed separately. Additional information is as follows: A B TOTAL Final sales value Sales value at split off Cost beyond split off Joint cost prior to split off 81,000 66,000 18,000 99,000 94,000 22,000 180,000 160,000 40,000 30,000 Answer the following: 1. Compute the joint cost assigned to A and B using the Actual Net Realizable Value approach. 2. Compute the joint cost assigned to A and B using the Approximated Net Realizable Value approach.