Webster Company produces 40,000 units of product A, 30,000 units of product B, and 15,000 units of product C from the same manufacturing process at a cost of $390,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $30 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 33,000 units of A, 29,000 units of B, and 15,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the value of the ending inventory of product A? (Do not round intermediate calculations.) Ending inventory < Required 1 Required 2 >

Webster Company produces 40,000 units of product A, 30,000 units of product B, and 15,000 units of product C from the same manufacturing process at a cost of $390,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $30 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 33,000 units of A, 29,000 units of B, and 15,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the value of the ending inventory of product A? (Do not round intermediate calculations.) Ending inventory < Required 1 Required 2 >

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 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
Webster Company produces 20,000 units of product A, 15,000 units of product B, and 12,000 units of product C from the same manufacturing process at a cost of $360,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $35 for A, $20 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 13,000 units of A, 14,000 units of B, and 12,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the value of the ending inventory of product A? (Do not round intermediate calculations.) Ending inventory
Webster Company produces 30,000 units of product A, 24,000 units of product B, and 16,000 units of product C from the same manufacturing process at a cost of $400,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $30 for A, $25 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 23,000 units of A, 23,000 units of B, and 16,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B?
Webster Company produces 30,000 units of product A, 25,000 units of product B, and 16,500 units of product C from the same manufacturing process at a cost of $405,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $25 for A, $10 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 23,000 units of A, 24,000 units of B, and 16,500 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the value of the ending inventory of product A? (Do not round intermediate calculations.) Ending inventory
Webster Company produces 36,000 units of product A, 28,000 units of product B, and 11,000 units of product C from the same manufacturing process at a cost of $350,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $20 for A, $10 for B, and $1 for C. None of the products require separable processing. Of the units produced, Webster Company sells 29,000 units of A, 27,000 units of B, and 11,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. (Do not round intermediate calculations.) 1) What is the value of the ending inventory of product A? 2)What is the value of the ending inventory of product B?
Crane Production Company manufactures two products from a joint process. The joint process costs $37,000. Both products must be processed past the split-off point to be marketable. White sugar produces 680 units or 37,000 lbs., incurs separable costs of $5 per unit, and has a market price of $25. Brown sugar produces 2,030 units or 74,500 lbs., incurs separable costs of $10 per unit, and has a market price of $20. Using the sales value at split-off method to allocate joint costs, how much joint costs will be allocated to each product? (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) White Sugar Brown Sugar $ $ Joint Costs
XYZ Corporation manufactures two products out of a joint process-A and B. The joint costs incurred are $197,000 for a standard production run that generates 80,000 pounds of A and 20,000 pounds of B. A can sell for $6.00 per pound whereas B sells for $5.00 per pound. If additional processing costs beyond the splitoff point are $2.00 per pound for A and $1.00 per pound for B, the amount of joint cost of each production run allocated to A using the constant gross-margin percentage NRV method is: $152,000. $312,000. $65,000. $45,000.
Pharoah Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $181,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Spock Uhura Sulu Sales Value at Split-Off Point $209,200 300,900 455,600 Allocated Joint Costs Incremental profit (loss) $ $39,600 60,700 80,700 Cost to Process Further Spock $109,700 85,000 250,700 Sales Value of Processed Product the cold as is $299,000 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 401,000 799,400 Uhura processed further $ Sulu
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $178,600 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value atSplit-Off Point AllocatedJoint Costs Cost to ProcessFurther Sales Value ofProcessed Product Spock $209,500 $39,200 $110,100 $300,900 Uhura 299,900 59,100 85,100 400,900 Sulu 454,000 80,300 249,500 800,700 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock Uhura Sulu…
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $179,400 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value atSplit-Off Point AllocatedJoint Costs Cost to ProcessFurther Sales Value ofProcessed Product Spock $209,700 $40,000 $109,600 $300,900 Uhura 300,000 60,200 84,900 399,900 Sulu 455,500 79,200 249,500 800,500 Determine the incremental profit or loss that each of the three joint products. Spock Uhura Sulu Incremental profit (loss) $ $ $ Indicate whether each of the three joint products should be sold as…
Sunland uses DM of $48,000 and incurs DL and MOH costs of $61,000 and $28,000, respectively, in a single process that results in two main products, Tex and Mex. Product Tex, which has an immediate sales value of $92,000, is further processed at a cost of $43,000 in order to increase its sales value to $150,000. How much are Sunland's joint costs, and to which products will they be assigned? How much are Sunland's separable costs, and to which products will they be assigned? Total joint costs Total separable costs $ Costs Assigned to