Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 11, Problem 47E
Net Realizable Value Method with By-Products
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for the revenues from its by-product sales as other income. Additional information follows:
Required
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product M1?
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Using a physical measurement method, what amount of joint processing cost is allocated to product B?
Using sales value at split-off, what amount of joint processing cost is allocated to Product B?
HAHA manfactures products R, S and T from a joint process. Below are additional information:
Question: How much is the joint cost allocated to S using sales value split off method.
Which of the following methods allocates joint costs based on the potential market value at the point where the products will be separated to be processed further?
a.net realizable value method
b.weighted average method
c.market value at split-off method
d.physical units method
Chapter 11 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 11 - Why do companies allocate costs? What are some of...Ch. 11 - What are the three methods of allocating service...Ch. 11 - What are the similarities and differences among...Ch. 11 - What criterion should be used to determine the...Ch. 11 - What is a limitation of the direct method of...Ch. 11 - What is a limitation of the step method of...Ch. 11 - Prob. 7RQCh. 11 - Why would a number of accountants express a...Ch. 11 - Prob. 9RQCh. 11 - What is the basic difference between the...
Ch. 11 - Prob. 11RQCh. 11 - If cost allocations arc arbitrary and potentially...Ch. 11 - Prob. 13CADQCh. 11 - Prob. 14CADQCh. 11 - Prob. 15CADQCh. 11 - Prob. 16CADQCh. 11 - Prob. 17CADQCh. 11 - Prob. 18CADQCh. 11 - What are some of the factors that a company needs...Ch. 11 - Prob. 20CADQCh. 11 - Prob. 21CADQCh. 11 - Prob. 22CADQCh. 11 - How is joint cost allocation like service...Ch. 11 - Prob. 24CADQCh. 11 - In what ways is joint cost allocation similar to...Ch. 11 - Why Are Costs Allocated?Ethical Issues You are the...Ch. 11 - Cost Allocation: Direct Method Caro Manufacturing...Ch. 11 - Allocating Service Department Costs First to...Ch. 11 - Cost Allwat ion: Direct Method University Printers...Ch. 11 - Prob. 30ECh. 11 - Cost Allocation: Step Method
Refer to the data for...Ch. 11 - Cost Allocation: Reciprocal Method
Refer to the...Ch. 11 - Cost Allocation: Reciprocal Method, Two Service...Ch. 11 - Cost Allocation: Reciprocal Method
Refer to the...Ch. 11 - Prob. 35ECh. 11 - Prob. 36ECh. 11 - Prob. 37ECh. 11 - Prob. 38ECh. 11 - Prob. 39ECh. 11 - Prob. 40ECh. 11 - Net Realizable Value Method: Multiple Choice
Oak...Ch. 11 - Sell or Process Further: Multiple Choice
Refer to...Ch. 11 - Net Realizable Value Method Euclid Corporation...Ch. 11 - Estimated Net Realizable Value Method Blasto,...Ch. 11 - Net Realizable Value Method to Solve for Unknowns...Ch. 11 - Net Realizable Value Method Bixel Components...Ch. 11 - Net Realizable Value Method with By-Products...Ch. 11 - Net Realizable Value Method Deming Sons...Ch. 11 - Physical Quantities Method
Refer to the facts in...Ch. 11 - Sell or Process Further
Refer to the facts in...Ch. 11 - Physical Quantities Method The following questions...Ch. 11 - Physical Quantities Method; Sell or Process...Ch. 11 - Physical Quantities Method with By-Product...Ch. 11 - Step Method with Three Service Departments Model,...Ch. 11 - Comparison of Allocation Methods BluStar Company...Ch. 11 - Solve for Unknowns: Direct Method Franks Foods has...Ch. 11 - Solve for Unknowns: Step Method RT Renovations is...Ch. 11 - Cost Allocation: Step Method with Analysis and...Ch. 11 - Prob. 59PCh. 11 - Prob. 60PCh. 11 - Direct, Step, and Reciprocal Methods:...Ch. 11 - Cost Allocation: Step and Reciprocal Methods...Ch. 11 - Allocate Service Department Costs: Direct and Step...Ch. 11 - Prob. 64PCh. 11 - Prob. 65PCh. 11 - Prob. 66PCh. 11 - Prob. 67PCh. 11 - Prob. 68PCh. 11 - Fletcher Fabrication, Inc., produces three...Ch. 11 - Findina Missing Data: Net Realizable Value Spartan...Ch. 11 - Finding Missing Data: Net Realizable Value Blaine,...Ch. 11 - Joint Costing in a Process Costing Context:...Ch. 11 - Find Maximum Input Price: Estimated Net Realizable...Ch. 11 - Effect of By-Product versus Joint Cost Accounting...Ch. 11 - Prob. 75PCh. 11 - Prob. 76P
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- Using sales value at split-off, what amount of joint processing cost is allocated to Product Alpha? Using a physical measurement method, what amount of joint processing cost is allocated to Product Gamma? Using net realizable value at split-off, what amount of joint processing cost is allocated to Product Delta?arrow_forward1. Joint Costs are: a. Indivisible b. Present throughout the production process of joint products C. Common costs d. A collection of direct materials, direct labor and manufacturing overhead costs that serve as the primary base for establishing a sales value for joint products 2. For purposes of allocating joint costs to joint products, the relative sales value at split-off method could be used in which of the following situations? a. b. C. d. No Cost Beyond Split -off Cost beyond Split -Off Yes Yes Yes No No Yes No No 3. The allocation of joint costs to individual products is useful primarily for the purposes of: a. Determining whether to produce one of the joint products b. Determining the best market value c. Inventory costing d. Deciding whether to sell at the split-off point 4. Which of the following statement best describe a by product 125 a. A product that usually produces a small amount of revenue when compared to the main product revenue b. A product that does not bear any…arrow_forwardUsing a physical measurement method, what amount of joint processing cost is allocated to Product B? c. P1,311.00 d. P3,495.00 b. P2,447.00 a. P1,748.00 Using the sales value at split-off point method, what of amount of joint processing cost is allocated to Product A? c. P1,108.00 b. P2,276.00 a. P4,433.00 d. P1,182.00 Using net realizable value after split-off point method, what amount of joint processing cost is allocated to Product C? d. P4,263.00 c. P2,375.00 b. P1,550.00 a. P1,017.00arrow_forward
- Allocating costs for joint products can be done by: a. Sales Value Approach b. Contribution Margin Approach C. All Approaches are correct. d. Comparative Income Approacharrow_forwardWhich of the following choices correctly denotes the data needed to allocate joint costs under the relative-sales-value method? Sales Value of Product at Split-Off Separable Cost Sales Value of Product After Processing Beyond Split-Off A. Yes Yes No B. Yes Yes Yes C. Yes No No D. No Yes Yes E. No No Yes Choice A Choice D Choice C Choice B Choice Earrow_forwardUsing a physical measurement method, what amount is joint processing cost is allocated to product Wan? Using net realizable value at split-off, what amount of joint processing cost is allocated to product tri?arrow_forward
- When management believes that there is a direct link between the joint costs incurred and the value of products before further processing takes place, the _____ is the best alternative to allocating joint costs. A.physical measures methodB.NRV methodC.sales value at splitoff methodD.constant grossmargin percentage methodarrow_forwardContinuation: Using sales value at split-off, what amount of joint processing cost is allocated to Product A? * a. P22,165 b. P 5,910 c. P11,380 d. P 5,542 Using net realizable value at split-off, what amount of joint processing cost is allocated to Product C? * a. P10,850 b. P 5,085 c. P 7,750 d. P21,315arrow_forwardIndirect and common costs often make up a significant portion of the cost of a product. All of the following are reasons for indirect cost allocation to cost objects except to Multiple Choice reduce total costs identified with products. measure income and assets for external reporting purposes. justify costs for reimbursement purposes. provide information for economic decision making.arrow_forward
- Refer to Exercise 7.25 and allocate the joint costs using the sales-value-at-split-off method.arrow_forwardFor which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard costarrow_forwardContribution margin by segment The following information is for LaPlanche Industries Inc.: Determine the contribution margin for (A) Product YY and (B) West Region.arrow_forward
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Incremental Analysis - Sell or Process Further; Author: Melissa Shirah;https://www.youtube.com/watch?v=7D6QnBt5KPk;License: Standard Youtube License