Split Company produces three products - X, Y, and Z- from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $130,000. Sales values and costs needed to evaluate Split's production policy follow. Units Product Produced Sales Value at Split Off If Processed Further Sales Value Additional Costs y 14,000 7,500 3,500 $ 42,500 22,500 26,000 $ 92,500 47,500 40,000 $ 3,700 8,000 9,000 The amount of joint costs allocated to product Z 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): O O Multiple Choice $18,200. $35,000. $39,000. $57,200. $72,800.
Split Company produces three products - X, Y, and Z- from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $130,000. Sales values and costs needed to evaluate Split's production policy follow. Units Product Produced Sales Value at Split Off If Processed Further Sales Value Additional Costs y 14,000 7,500 3,500 $ 42,500 22,500 26,000 $ 92,500 47,500 40,000 $ 3,700 8,000 9,000 The amount of joint costs allocated to product Z 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): O O Multiple Choice $18,200. $35,000. $39,000. $57,200. $72,800.
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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