Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Labor Manufacturing overhead Mining $ 482,000 $ 398,000 Products Units sold Units in ending inventory (December 31) Sales revenue Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Metal-A 236,000 82,000 $ 1,180,000 Metal-B 224,000 0 $ 596,000 Metal-C 82,000 88,000 $ 205,000 Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs.
Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Labor Manufacturing overhead Mining $ 482,000 $ 398,000 Products Units sold Units in ending inventory (December 31) Sales revenue Plant A $430,000 $ 355,600 Plant B $ 290,000 $ 146,000 Metal-A 236,000 82,000 $ 1,180,000 Metal-B 224,000 0 $ 596,000 Metal-C 82,000 88,000 $ 205,000 Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 1MC: Clark Kent Inc. buys crypton for $.80 a gallon. At the end of processing in Dept. 1, crypton splits...
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