Question No. 1 CLO 4 Siqa company buys soybeans and processes them into other soy products. Each ton of soybeans that Siqa purchases for $340 can be converted for an additional $200 into 600 pounds of soymeal and 180 gallons of soy oil. A pound of soymeal can be sold at split-off point for $1.25 and soy oil can be sold in bulk for $4.75 per gallon. Siqa company can process the 600 pounds of soymeal into 825 pounds of soy cookies at an additional cost of $480. Each pound of soy cookies can be sold for $3.10 per pound. The 180 gallons of soy oil can be packaged at a cost of $270 and made into 720 quarters of soyolo. Each quarter can be sold for $1.75. Required: 2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split- off point.

Question No. 1 CLO 4 Siqa company buys soybeans and processes them into other soy products. Each ton of soybeans that Siqa purchases for $340 can be converted for an additional $200 into 600 pounds of soymeal and 180 gallons of soy oil. A pound of soymeal can be sold at split-off point for $1.25 and soy oil can be sold in bulk for $4.75 per gallon. Siqa company can process the 600 pounds of soymeal into 825 pounds of soy cookies at an additional cost of $480. Each pound of soy cookies can be sold for $3.10 per pound. The 180 gallons of soy oil can be packaged at a cost of $270 and made into 720 quarters of soyolo. Each quarter can be sold for $1.75. Required: 2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split- off point.

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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Question No. 1 CLO 4 Siqa company buys soybeans and processes them into other soy products. Each ton of soybeans that Siqa purchases for $340 can be converted for an additional $200 into 600 pounds of soymeal and 180 gallons of soy oil. A pound of soymeal can be sold at split-off point for $1.25 and soy oil can be sold in bulk for $4.75 per gallon. Siqa company can process the 600 pounds of soymeal into 825 pounds of soy cookies at an additional cost of $480. Each pound of soy cookies can be sold for $3.10 per pound. The 180 gallons of soy oil can be packaged at a cost of $270 and made into 720 quarters of soyolo. Each quarter can be sold for $1.75. Required: 1. Allocate the joint cost to the cookies and soyolo using the following: a. Sales value at split-off point method. b. Net Realizable Method (NRVM)
Question No. 1 CLO 4 Siqa company buys soybeans and processes them into other soy products. Each ton of soybeans that Siqa purchases for $340 can be converted for an additional $200 into 600 pounds of soymeal and 180 gallons of soy oil. A pound of soymeal can be sold at split-off point for $1.25 and soy oil can be sold in bulk for $4.75 per gallon. Siqa company can process the 600 pounds of soymeal into 825 pounds of soy cookies at an additional cost of $480. Each pound of soy cookies can be sold for $3.10 per pound. The 180 gallons of soy oil can be packaged at a cost of $270 and made into 720 quarters of soyolo. Each quarter can be sold for $1.75. Required: 1. Allocate the joint cost to the cookies and soyolo using the following: a. Sales value at split-off point method. b. Net Realizable Method (NRVM) 2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split- off point.
Q2 Joint cost allocation: sell immediately or process further. Iowa Soy Products (ISP) buys soy beans and processes them into other soy products. Each ton of soy beans that ISP purchases for $300 can be converted for an additional $200 (joint cost) into 500 pounds of soy meal and 100 gallons of soy oil. 1 ton = 2000 pound A pound of soy meal can be sold at split off for $1 and soy oil can be sold in bulk for $4 per gallon. ISP can process the 500 pounds of soy meal into 600 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2 per pound. The 100 gallons of soy oil can be packaged at a cost of $200 and sold for $12.5 per gallons. Required 1. Allocate the joint cost to the cookies and the soy oil using the following: a. Sales value at split off method b. NRV method
Soy Products (DSP) buys soybeans and processes them into other soy products. Each ton of soybeans that DSP purchases for $260 can be converted for an additional $170 into 575lbs of soy meal and 140 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.48 and soy oil can be sold in bulk for $4.75 per gallon. DSP can process the 575 pounds of soy meal into 725 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.48 per pound. The 140gallons of soy oil can be packaged at a cost of $200 and made into 560quarts of Soyola. Each quart of Soyola can be sold for $1.45.
Illion Soy Products (ASP) buys soybeans and processes them into other soy products. Each ton of soybeans that ASP purchases for $320 can be converted for an additional $220 into 525 lbs of soy meal and 120 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can be sold in bulk for $4.5 per gallon. ASP can process the 525 pounds of soy meal into 675 pounds of soy cookies at an additional cost of $310. Each pound of soy cookies can be sold for $2.32 per pound. The 120 gallons of soy oil can be packaged at a cost of $250 and made into 480 quarts of Soyola. Each quart of Soyola can be sold for $1.15. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
Illion Soy Products (ASP) buys soybeans and processes them into other soy products. Each ton of soybeans that ASP purchases for $250 can be converted for an additional $180 into 700 lbs of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.08 and soy oil can be sold in bulk for $4 per gallon. ASP can process the 700 pounds of soy meal into 800 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.08 per pound. The 80 gallons of soy oil can be packaged at a cost of $200 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.45. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
Question 1 Clover Dairy Products Corp. buys one input of full-cream milk, and refines it in a churning process. From each gallon of milk Clover produces three cups of butter and nine cups of buttermilk. During May 2017, Clover bought 12,000 gallons of milk for $44,500. Clover spent another $18,860 on the churning process to separate the milk into butter and buttermilk. Butter could be sold immediately for $4.40 per pound and buttermilk could be sold immediately for $2.40 per quart (note: two cups = one pound; four cups = one quart). Clover chooses to process the butter further into spreadable butter by mixing it with canola oil, incurring an additional cost of $3.20 per pound. This process results in two tubs of spreadable butter for each pound of butter processed. Each tub of spreadable butter sells for $4.60 Required: Allocate the $63,360 joint cost to the spreadable butter and the buttermilk using the following: Physical-measure method (using cups) of joint cost allocation Sales…
Nervana Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $350 can be converted for an additional $210 into 650 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can be sold in bulk for $4.5 per gallon. NSP can process the 650 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.32 per pound. The 100 gallons of soy oil can be packaged at a cost of $230 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.15. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Sales value of total production at splitoff…
eBook Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of $10,250 per batch. The additional processing will also cause a 6% loss of product due to evaporation. a. Prepare a differential analysis report for the decision to sell or process further. Abica Coffee CompanyProcess Columbian Coffee FurtherDifferential Analysis Report Differential revenue from further processing per batch: $Revenue from sale of Decaf Columbian Revenue from sale of Columbian coffee $Differential revenue Differential cost per batch: Additional…
COTB MC Qu. 13-55 (Algo) Assume a company purchases honeycombs from... Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include: Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product Total fixed costs $ 4,500 400 2,000 $ 6,900 The candy-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 containers of candy, what is the financial advantage (disadvantage) of continuing to process raw honey into candies? Multiple Choice
Saskatchewan Soy Products (SSP) buys soy beans and processes them into other soy products. Each tonne of soy beans that SSP purchases for $280 can be converted for an additional $200 into 550 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.48, and soy oil can be sold in bulk for $4.75 per gallon. SSP can process the 550 lbs of soy meal into 700 lbs of soy cookies at an additional cost of $380. Each pound of soy cookies can be sold for $2.48 per pound. The 100 gallons of soy oil can be packaged at a cost of $200 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.35. Required 1. Allocate the joint cost to the cookies and the Soyola using: a. Sales value at splitoff method b. NRV method 2. Should the company have processed each of the products further? What effect does the allocation method have on this decision? www Requirement 1a. Allocate the joint cost to the cookies and the Soyola using the sales value at…
Question 2 Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard material is 0.90 ounces per seed packet at a cost of $0.72 per ounce. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 70,000 packets. They paid $42,000 for 60,000 ounces of seed and used all but 5,000 ounces of this purchase in production during the period. What is their material efficiency variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number. Enter as a whole number, no commas and no dollar signs. Your Answer: Answer Ver