Question

Christiansen Corporation manufactures joint products W and X. During a recent period, joint costs amounted to...

Christiansen Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data:
  

W X
  Separable processing costs $40,000 $160,000
  Sales price (per gallon) if processed beyond split-of $15 $13

The joint cost allocated to X under the net-realizable-value method would be: (Do not round your intermediate calculations.)

$294,000.

$310,000.

$232,105.

$274,000.

None of these.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option A: $294,000

Workings:

W X Total
Selling Price per Unit 15 13
Production Units 20000 50000
Sales    300,000.00    650,000.00    950,000.00
Less: Procesing Costs      40,000.00    160,000.00    200,000.00
Net Realizable Value    260,000.00    490,000.00    750,000.00
Joint Costs                          450,000.00
Joint cost allocated to X 450000/750000*490000 294000


Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.

Also please give your positive rating.

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
Christiansen Corporation manufactures joint products W and X. During a recent period, joint costs amounted to...
Christiansen Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data:    W X   Separable processing costs $40,000 $160,000   Sales price (per gallon) if processed beyond split-of $15 $13 The joint cost allocated to W under the net-realizable-value method would be: (Do not round your intermediate...
Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to...
Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: W X Separable processing costs $ 40,000 $ 160,000 Sales price (per gallon) if processed beyond split-off $ 14 $ 12 The joint cost allocated to X under the net-realizable-value method would be: Multiple Choice...
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs...
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,900 gallons of product A and 1,400 gallons of product B to the split-off point costs $6,800. The sales value at split-off is $3.00 per gallon for product A and $29.50 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.80 per gallon before it...
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,000. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product         Gallons Further Processing Cost per Gallon Eventual Market Price per Gallon L-Ten         3,000 $0.60   $2.20   Triol         3,500 0.90 4.90 Pioze         2,200 1.60 6.90...
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are...
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows: X Y Z Total Units produced 17,000 13,000 9,000 39,000 Allocated joint costs $ 154,980 $ 126,000 $ 100,800 $ 381,780 Sales value at split-off ? 200,000 160,000 606,000 Additional costs for further processing 47,000 39,000 28,000 114,000 Sales value if processed further 423,000...
The Herman Company uses a joint process to produce products W, X, Y and Z. Each...
The Herman Company uses a joint process to produce products W, X, Y and Z. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $32,500. Other relevant data are as follows: Product Sales Value at Split-Off Additional Costs of Processing Sales Value of Final Product W $7,500 $9,000 $ 22,500 X 13,500 7,500 20,000 Y 9,000 12,500 15,000 Z 6,500 5,500     12,500 $36,500 $34,500 $70,000...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 25.00 per pound 14,000 pounds B $ 19.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 24.00 per pound 13,800 pounds B $ 18.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $355,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 21.00 per pound 13,200 pounds B $ 15.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 16.00 per pound 12,200 pounds B $ 10.00 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT