Lawn Products produces two products (X and Y) and a by-product (2) 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 16,000 pounds of Alpher at a total cost of $92,000. The output of the process consisted of 35,550 units of product X, 43,450 units of product Y, and 6,400 units of by-product Z. By-product Z can be sold for $8,800. 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? Product X Product Y Joint Costs

Lawn Products produces two products (X and Y) and a by-product (2) 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 16,000 pounds of Alpher at a total cost of $92,000. The output of the process consisted of 35,550 units of product X, 43,450 units of product Y, and 6,400 units of by-product Z. By-product Z can be sold for $8,800. 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? Product X Product Y Joint Costs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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