Double Company produces three products — DBB-1, DBB-2, and DBB-3 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. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 18,200 27,300 39,300 84,800 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 125,125 $ 50,050 $ 72,050 $ 247,225 Units Produced 18,200 27,300 39,300 84,800 Total Joint Cost $ 4,040,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is: Multiple Choice $1,080,689. $766,632. $514,614. $955,500. $2,444,698.
Double Company produces three products — DBB-1, DBB-2, and DBB-3 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. Key information about Double's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 18,200 27,300 39,300 84,800 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 125,125 $ 50,050 $ 72,050 $ 247,225 Units Produced 18,200 27,300 39,300 84,800 Total Joint Cost $ 4,040,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is: Multiple Choice $1,080,689. $766,632. $514,614. $955,500. $2,444,698.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Double Company produces three products — DBB-1, DBB-2, and DBB-3 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. Key information about Double's production, sales, and costs follows.
| DBB-1 | DBB-2 | DBB-3 | Total | |
|---|---|---|---|---|
| Units Sold | 18,200 | 27,300 | 39,300 | 84,800 |
| Price (after additional processing) | $ 65 | $ 50 | $ 75 | |
| Separable |
$ 125,125 | $ 50,050 | $ 72,050 | $ 247,225 |
| Units Produced | 18,200 | 27,300 | 39,300 | 84,800 |
| Total Joint Cost | $ 4,040,000 | |||
| Sales Price at Split-off | $ 25 | $ 35 | $ 55 |
The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is:
Multiple Choice
-
$1,080,689.
-
$766,632.
-
$514,614.
-
$955,500.
-
$2,444,698.
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