Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Joint Cost Cereal Split-Off Point $45,000 Yummies 19, 200 kilograms Sales Price per Kilogram $3.30 Crummies 4,800 kilograms 3.80 Required: Use the physical-units method to allocate the company's joint production cost between Yummies and Crummies. (Do not round intermediate calculations.) Yummies Crummies Allocation of Joint Cost

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Joint Cost Cereal Split-Off Point $45,000 Yummies 19, 200 kilograms Sales Price per Kilogram $3.30 Crummies 4,800 kilograms 3.80 Required: Use the physical-units method to allocate the company's joint production cost between Yummies and Crummies. (Do not round intermediate calculations.) Yummies Crummies Allocation of 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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Tendler Co. produces two products, X and Y, using a joint process. The following data has been given to you: Joint cost Unit selling prices of completely processed products Units produced and processed beyond split-off Processing cost beyond split-off point Total $3,300 450 $3,700 Allocate the joint cost using the net-realizable value method: X: S XIN Y: S ? $10 300 $1,100 Y ? $40 150 $2,60
Mahere Cereals manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $ 43,000 Yummies 15,900 kilograms $ 3.30 Crummies 10,600 kilograms 3.80 Required: Use the relative-sales-value method to allocate Mahere Cereals joint production cost between Yummies and Crummies. Note: Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount. Sakes value at split off point Allocation of joint costs Yummies Crummies Total
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Split-Off Point 13,400 kilograms 9,400 kilograms Sales Price per Kilogram $7.40 8.90 Joint Cost $104,000 Cereal Yummies Crummies Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Company's joint production cost between Yummies and Crummies. (Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount.) Yummies Crummies Total Sales Value at Split-off Point Allocation of Joint Cost
Modern Mills Ltd. manufactures certain grades of products known as M, B1 and B2. In course of manufacture of Product M (main product), by-products-B1 and B, emerge. The joint expenses of manufacture amount to $ 2,37,600. All the three products are processed further after separation and sold as per details given below : Product-M (Ву-products) Product B1 Product B2 Sales Cost incurred after separation Profit as percentage on sales Total fixed selling expenses are 10% of total cost of sales which are apportioned to the three products in the ratio of 20 : 40 : 40. $ 2,00,000 20,000 1,20,000 15,000 20 80,000 10,000 15 25 Required : (i) Prepare a statement showing the apportionment of joint costs to the products (M, B1 and B2). (ii) If the Product B1 (by-product) is not subject to further processing and is sold at the point of separation, for which there is a market at $ 1,00,440 without incurring any selling expenses, would you advise its disposal at this stage ? Show the workings.
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
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?
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?
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
CARAMEL Inc. manufactures three joint products. The following production data were provided by CARAMEL Inc. for the current period: Product Name Units Produced X Y Z Joint product costs for the current period were as follows: Raw materials Direct labor Factory overhead Costs before separation Costs after separation: X 1,000 2,000 3,000 The company uses the net realizable value method for allocating joint costs. 8. What is the Gross profit/(loss) on the sale of all X products? Y Z Production for April, in pounds: Z Additional Processing Final Selling Price Cost after Split Off 9. What is the total gross profit (loss) on the sale of all the joint products? MACCHIATO Company produces two main products jointly. X and Y. and Z. which is a by- product of Y. X and Y are produced from the same raw material. Z is manufactured from the residue of the process creating Y. Sales for April: Costs before separation are apportioned between the two main products by the net realizable value method. The…
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 O $53,280. $48,000. BDC-4 BDC-5 10,800 25,200 $33,120 $57,600. ? Assume that Bulldog Canyon allocates joint costs using the relative-sales-value method. What is the amount of joint cost allocation to BDC-4? $17,280. $187,200 ? BDC-6 54,000 Not enough information is provided to determine how to allocate the joint cost. Total 90,000 $144,000 ? 2 $468,000
Y Company produces two joint products: Sweet and Sour. Joint cost is allocated using the net realizable value method at split-off point. Joint production cost is $70,000. Neither product is salable at split-off point. During May, the additional costs incurred beyond split-off point are as follows: Sweet $ 32,000 Sour $ 48,000 Production: Sweet: 3,200 units Sour: 1,600 units Selling prices: Sweet: $50.00 per unit Sour: $ 90.00 per unit What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit) Joint cost allocated to Sweet: $_____________________________ Joint cost allocated to Sour:…
K The Cocoa Bean Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa Bean.) Production and sales data for August are as follows (assume no beginning inventory): (Click the icon to view the data.) Required Requirement 1. Calculate how the joint costs of $52,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs Chocolate powder Milk chocolate Total More info production at splitoff Weighting - allocated More info It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single splitoff point. Every 1,600 pounds of cocoa beans yields 25 gallons of…