Question

Question 1 Harmon Inc. produces joint products L, M, and N from a joint process. Information...

Question 1

Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $90,000 was as follows:

L M N Total
Separable Processing cost $ 11,500 $ 28,000 $ 6,500 $ 46,000
Units Produced 1,800 4,000 4,900 10,700
Sales Value (after addt’l processing) $ 66,000 $ 57,500 $ 16,000 $ 139,500

The amount of joint costs allocated to product L using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Multiple Choice

  • $33,645.

  • $37,324.

  • $41,215.

  • $30,999.

  • $15,140.

Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $110,000 was as follows:

L M N Total
Separable Processing cost $ 13,500 $ 32,000 $ 12,500 $ 58,000
Units Produced 2,600 6,000 5,700 14,300
Sales Value (after addt’l processing) $ 74,000 $ 67,500 $ 28,000 $ 169,500

The amount of joint costs allocated to product N using the net realizable value method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Multiple Choice

  • $14,217.

  • $15,291.

  • $35,022.

  • $46,245.

  • $59,686.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Question 1 –

Physical measure method uses the units produced, weight or volume as a basis to allocate the joint cost among the products.

Hence, we need to use Units Produced to allocate joint cost:

Joint Cost allocated to Product L (based on units produced) = Total Joint Costs $90,000 * L’s Unit Produced 1,800 Units / Total Units 10,700 Units

= $90,000 * 1800 / 10,700

= $15,140

The correct option is $15,140

Hope the above calculations, working and explanations are clear to you and help you to understand the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for other parts problems

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a...
Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $75,000 was as follows: L M N Total Separable Processing cost $ 10,000 $ 25,000 $ 2,000 $ 37,000 Units Produced 1,200 2,500 4,300 8,000 Sales Value (after addt’l processing) $ 60,000 $ 50,000 $ 7,000 $ 117,000 The amount of joint costs allocated to product M using the physical measure method is (calculate all...
Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a...
Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $120,000 was as follows: L M N Total Separable Processing cost $ 14,500 $ 34,000 $ 15,500 $ 64,000 Units Produced 3,000 7,000 6,100 16,100 Sales Value (after addt’l processing) $ 78,000 $ 72,500 $ 34,000 $ 184,500 The amount of joint costs allocated to product L using the net realizable value method is (calculate...
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product...
Marin Products 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 Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 13,000 20,000 28,000 61,000 Price (after addt’l processing) $ 50 $ 35 $ 60 Separable Processing cost $...
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product...
Marin Products 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 Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 18,000 28,000 40,000 86,000 Price (after addt’l processing) $ 55 $ 40 $ 65 Separable Processing cost $...
Part A: Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process....
Part A: Marin Products 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 Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 14,000 22,000 30,000 66,000 Price (after addt’l processing) $ 85 $ 70 $ 95 Separable Processing...
Tango Company produces joint products M, N, and T from a joint process. This information concerns...
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $130,000: After Split-Off Product Units Produced and Sold Total Separable Costs Total Final Sales Value M 11,000 $ 10,000 $ 170,000 N 5,000 9,200 150,000 T 6,000 7,800 27,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations....
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product...
Marin Products 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 Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 21,000 19,000 26,000 66,000 Price (after addt’l processing) $ 70 $ 55 $ 80 Separable Processing cost $...
1). Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each...
1). Marin Products 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 Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 17,000 26,000 39,000 82,000 Price (after addt’l processing) $ 85 $ 70 $ 95 Separable Processing cost...
Company A produces two products—methanol (wood alcohol) and turpentine -- in a joint process. Joint costs...
Company A produces two products—methanol (wood alcohol) and turpentine -- in a joint process. Joint costs amount to $125,000 per batch of output. Each batch totals 13,500 gallons, made of 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $11 per gallon; turpentine, $3 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon. The company has discovered an additional process by which the...
Bennett Company produces two products from a joint process: A and C. Joint processing costs for...
Bennett Company produces two products from a joint process: A and C. Joint processing costs for this production cycle are $9,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard A 1,800 $7.00 $4.50 $1.50 $8.00 C 2,600 10.00 6.00 3.50 12.25 If A and C are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Bennett...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT