Crane produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.

Crane produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $81500: direct materials amounting to $59800 and another $21700 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs Units Sold Sale Price in lbs per lb Coconut Milk 24300 20800 $1.30 Coconut Meat 14100 10100 6.20 Coconut Skin 2370 2160 1.00 How much in joint costs should be allocated to the by-product, using the sales method? $2163. $2160. ○ $2370. ○ $0.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter25: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...

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Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Units Produced in lbs. Units Sold in lbs. Sales price per lb. Coconut Milk 21,000 19,500 $1.30 Coconut Meat 12,200 10,300 6.20 Coconut Skin 2,250 2,000 1.00 How much in joint costs should be allocated to the by-product, using the sales method? Question 1 options: a) $0.00 b) $2,000.00 c) $2,250.00 d) $1,604.00
Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin Units Produced in lbs $8030. $3290. $2030. $0. 24800 13100 3290 Units Sold in lbs 20500 11100 2030 Sale Price per lb $1.30 6.20 1.00 How much in joint costs should be allocated to the by-product, using the production method?
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