Oriole produces four kinds of ice cream from a single process. The total joint costs of $77,900 resulted in 3,000 gallons of vanilla,2,700 gallons of strawberry, 2,100 gallons of chocolate, and 1,000 gallons of Neapolitan ice cream. Oriole sells the vanilla ice cream for$3.00/gallon and sells each of the other three flavors for $3.50/gallon. How much of the joint cost will be allocated to each product ifthe sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g.5,125.)Allocatedjointcosts$Vanilla$Strawberry$ChocolateNeapolitan

Here's how to allocate joint costs to each product using the sales value at split-off method:1.…

Answered: Oriole produces four kinds of ice cream…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...

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Novak produces four kinds of ice cream from a single process. The total joint costs of $87,800 resulted in 3,000 gallons of vanilla, 3,300 gallons of strawberry, 1,900 gallons of chocolate, and 900 gallons of Neapolitan ice cream. Novak sells the vanilla ice cream for $2.00/gallon and sells each of the other three flavors for $2.50/gallon. How much of the joint cost will be allocated to each product if the sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs Vanilla $ Strawberry $ Chocolate ta Neapolitan
M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,700 gallons of ice cream at a cost of $840 per batch. M & Z Creameries, Corp. sells the one-gallon containers for $23.00 each and spends $0.35 for each plastic container. M & Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets.Further processing of each batch of ice cream could produce 24,400 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint-sized portion for $2.70. Additional packaging would cost $0.30 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs.Should they continue to sell only one-gallon size containers of vanilla ice…
Oriole produces four kinds of ice cream from a single process. The total joint costs of $77,900 resulted in 3,000 gallons of vanilla, 2,700 gallons of strawberry, 2,100 gallons of chocolate, and 1,000 gallons of Neapolitan ice cream. Oriole sells the vanilla ice cream for $3.00/gallon and sells each of the other three flavors for $3.50/gallon. How much of the joint cost will be allocated to each product if the sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs $ Vanilla $ Strawberry $ Chocolate SA Neapolitan
lowa Soy Products (ISP) buys soy beans and processes them into other soy products. Each ton of soy beans can be converted into 500 pounds of soy meal and 100 gallons of soy oil. This process incurs joint costs of $ 540. At splitoff point; soy meal can be sold for $4 per pound, and soy ol can be sold for $5 per gallon. ISP can process the 500 pounds of soy meal into 600 pounds of soy cookies at an additional cost of $1500. Each pound of soy cookles can be sold for $6 per pound. The 100 gallons of soy oil can be packaged at an additional cost of $300 and made into 400 liters of Soyola. Each liter of Soyola can be sold for $3. (For each item below write your answers inside the boxes.) a) What is the total sales value (from both products) at splitoff point? Ans. = $ b) Using sales value at splitoff method, what amount of the joint costs ($ 540) would be allocated to soy meal Ans, = $ C) Using net realizable value method, what amount of the joint costs ($ 540) would be allocated to Soyola?…
Hal, Dal, & Stal Dairy Farmers, Inc., produces whole milk, 2% milk, and cream. The joint cost of producing these three products is $4,000. The split-off quantities of each product are 3,500 gallons of whole milk, 1,500 gallons of 2% milk, and 500 gallons of cream. The company can sell whole milk and cream at the split-off point, but 2% milk must be processed further before being sold. Whole milk and cream sell for $2.00 per gallon and $3.00 per gallon, respectively, at the split-off point. Although 2% milk requires further processing to be sold, management estimates a market value of $1.00 per gallon for 2% milk at the split-off point. Using the market value at split-off method, determine the amount of the total joint cost to be allocated to each product.
Healthy Eats produces three products from a single raw material. The total cost is $160,000 and the number of units for each product is as follows: Product A: 10,000 units Product B: 10,000 units Product C: 15,000 units Product A can be sold at the split-off point for $4 per unit, or it can be processed further at a cost of $25,000 and then sold for $10 per unit. Should product A be sold at the split-off point or processed further? Why?
Fruity Delight produces two products – fruit juice and fruit pulp – from a joint process. The joint cost of production is $28, 000. 500 kg of fruit pulp can be sold at split-off for $5 per kg; or processed further at an additional cost of $7, 500 into 750.00 kg of jam and be sold for $8.00 per kg. 10, 000 litres of fruit juice can be sold at split-off for $2.70 per litre; or processed further at an additional cost of $3500.00 into 2000.00 litres of fruit juice concentrate and be sold for $30 per litre. What is the difference in profit if the company decides to process further fruit pulp instead of selling it at split-off? Please put a negative sign to indicate a decrease and round your answer to two decimal places if necessary. 2$
The Redfield Company manufactures three products: chairs, big tables, and little tables. Each chair requires 2 hours in the assembly room and 4 hours in the painting center. Each big table requires 4 hours in assembly and 2 hours in painting. The corresponding values for little tables are 3 hours and 2 hours. The company has available 180 hours of assembly time and 200 hours of painting time. The contribution to profit is $8 for each chair, $10 for each big table, and $7 for each little table. There is a requirement that at least 50 tables (big and/or little) be produced or notables be produced. The objective is to maximize profit contribution.
McBride’s Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It can sell each product at the split-off point or process it further in relatively similar processes, so management has decided that the most appropriate method for allocating joint costs is the market value at split-off point. One gallon of cream sells for $15, while one gallon of milk sells for $4. How much of the joint cost is allocated to cream? Round percentage calculations to the nearest whole percent. a. $0 b. $1,000 c. $560 d. $440
Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 203,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
Care Manufacturers produces two products; Pureline and Furline. Both products use raw material fluoride and glycerol. Each unit of Pureline uses three (3) grams of fluoride and five (5) litres of glycerol. Each unit of Furline uses two (2) grams of fluoride and four (4) litres of glycerol. Each gram of fluoride is expected to cost $20 and a litre of glycerol $25. Sales and finished goods inventory budget for the year 2020 are as follows: Pureline Furline Budgeted Sales 20,000 units Budgeted Sales 16,000 units Opening Inventory 3,500 units Opening Inventory 2,500 units Closing Inventory 2,000 units Closing Inventory 1,500 units Selling Price $350 Selling Price $300 As at January 1, 2020, opening inventories of raw material are 800 grams of fluoride and 1,000 litres of glycerol. At the end of 2020, the company plans to hold 2,000 grams of fluoride and 1,800 litres of glycerol. The warehouse and stores…
Care Manufacturers produces two products; Pureline and Furline. Both products use raw material fluoride and glycerol. Each unit of Pureline uses three (3) grams of fluoride and five (5) litres of glycerol. Each unit of Furline uses two (2) grams of fluoride and four (4) litres of glycerol. Each gram of fluoride is expected to cost $20 and a litre of glycerol $25. Sales and finished goods inventory budget for the year 2020 are as follows: Pureline Furline Budgeted Sales 20,000 units Budgeted Sales 16,000 units Opening Inventory 3,500 units Opening Inventory 2,500 units Closing Inventory 2,000 units Closing Inventory 1,500 units Selling Price $350 Selling Price $300 As at January 1, 2020, opening inventories of raw material are 800 grams of fluoride and 1,000 litres of glycerol. At the end of 2020, the company plans to hold 2,000 grams of fluoride and 1,800 litres of glycerol. The warehouse and stores…

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