Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $85,000 was as follows: The amount of joint costs allocated to product L using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333 %, and round all dollar amounts to the nearest whole dollar): Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $85,000 was as follows: Separable Processing cost Units Produced Sales Value (after addt'l processing) L M N Total $11,000 $27,000 $5,000 $ 43,000 1,600 3,500 4,700 9,800 $64,000 $55,000 $13,000 $132,000 The amount of joint costs allocated to product L using the physical measure method is (calculate all ratios and percentages to 4 decimal places, example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $85,000 was as follows: The amount of joint costs allocated to product L using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333 %, and round all dollar amounts to the nearest whole dollar): Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $85,000 was as follows: Separable Processing cost Units Produced Sales Value (after addt'l processing) L M N Total $11,000 $27,000 $5,000 $ 43,000 1,600 3,500 4,700 9,800 $64,000 $55,000 $13,000 $132,000 The amount of joint costs allocated to product L using the physical measure method is (calculate all ratios and percentages to 4 decimal places, example 33.3333%, and round all dollar amounts to the nearest whole dollar):

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 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs A 10,000 $25 $125,000 B 15,000 30 250,000 C 12,500 24 125,000 Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used
A Chemical Company manufactures joint products Pep and Vim, and a by-product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Units Produced 5,000 4,000 1,000 Sales price per unit 50.00 40.00 5.00 Further processing cost per unit 10.00 5.00 0.00 Selling & Adm. Expense per unit 0.00 0.00 2.00 Operating Profit per unit 0.00 0.00 1.00 The gross profit for Pep is
Calla Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were P300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs A 10,000 P25 P125,000 B 15,000 30 250,000 C 12,500 24 125,000 Required: Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.
A Chemical Company manufactures joint products Pep and Vim, and a by product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Unit Produced 5000 4000 1000 Sales price per unit 50 40 5 Further processing cost per unit 10 5 0 Selling and adm. Expense per unit 0 0 2 operating profit per unit 0 0 1 Required: The gross profit for pep is The value of Zest to deducted from the joint cost is
Chem Manufacturing Company processes direct materials up to the splitoff point where two products (X and Y) are obtained and sold. The following information was collected for the month of November: Production: X 3000 gallons, Y 2000 gallons . Sales: X 2600 at $15 per gallon ,Y 1700 at $10 per gallon. The joint cost was $20000. No beginning inventories of X and Y. --- Using the physical-volume method, joint cost allocated for X : Select one: O a. $20000 O b. $8000 c. $12000 O d. $10000
COMBI Inc. manufactures three joint products. The following production data were provided by COMBI Inc. for the current period: (a) Product Name: Xen, units produced: 1,000, Additional Processing Cost After Split Off: Php 20,000.00, Final Selling Price: Php 50.00 (b) Product Name: Yen, unit produced: 2,000, Additional Processing Cost after Split off: Php 10,000.00, Final Selling Price : Php 10.00 (c) Product Name: Zen, Units Produced: 3,000, additional processing cost after Split off:30,000, Final Selling Price: Php 30.00. Joint Product costs for the current period were as follows: Raw Materials Php 10,000.00, Direct Labor Php 15,000.00, Factory overhead Php 25,000.00. The company uses the net realizable value method for allocating joint cost. 1.What is the Gross Profit/(Loss) on the sale of all Xen products? 2.What is the total gross profit/(loss) on the sale of all the joint products?
P Alvarez Company makes three joint products, products A, B, and C. For each batch, the materials cost is $22,500, direct labor cost is $6,600, and manufacturing overhead is $13,900. From each batch, the company makes 4,300 pounds of A, 3,200 pounds of B, and 2,500 pounds of C. Required: a. What are the total joint costs for each batch of the products? b. Allocate the joint costs to each of the three products. c. Determine the cost per pound for product A. a. Total joint costs b. Amount of joint costs allocated to A b. Amount of joint costs allocated to B b. Amount of joint costs allocated to C c. Cost for product A per pound
Ester Limited produces two products X and Y by producing a common raw material in a common production process. The production for the month of April was 8000 units of X and 6000 units of Y. Whereas sales were 7000 units and 4000 units of X and Y respectively. Following are the other details. Selling price per unit at split off point is $25 and $20 of X and Y respectively Selling price per unit after further processing is $60 for X and $80 for Y Other expenses are as follows: Further processing expense of X and Y is $29 and $38 respectively Total Joint cost for the month is $80,000 Allocate Joint cost on the basis of: (a) Market Value Split off method (b) Net realizable value method
Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 26,000 pounds of Alpha at a total cost of $102,000. The output of the process consisted of 30,150 units of product X, 36,850 units of product Y, and 7,400 units of by-product Z. By-product Z can be sold for $10,800. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y?
Canada corporation manufactures three products X,Y &Z from a joint process. February production is 4,000 X; 7,000 Y; and 8,000 Z. Respective per unit selling prices at splitoff are $15, $10, and $5. Joint costs up to the splitoff point are $75,000. If joint costs are allocated based upon the sales value at splitoff, what ?amount of joint costs will be allocated to Z .a $28,125 .b $26,471 .C $30,882 .d $17,647
Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 23,000 pounds of Alpha at a total cost of $99,000. The output of the process consisted of 28,800 units of product X, 35,200 units of product Y, and 7,100 units of by-product Z. By-product Z can be sold for $12,000. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y? Product X Product Y Joint Costs