Question

PA10. **LO 10.5** Calcion Industries produces two
joint products, Y and Z. Prior to the split-off point, the company
incurred costs of $36,000. Product Y weighs 25 pounds and product Z
weighs 75 pounds. Product Y sells for $150 per pound and product Z
sells for $125 per pound. Based on a physical measure of output,
allocate joint costs to products Y and Z.

Solution

Product Y pounds:

Product Z pounds:

Total pounds:

Product Y allocation:

Product Z allocation:

Answer #1

Product Z 75 pounds

Product Y 25 pounds

Joint cost is $36,000

Joint cost allocated to product Y under physical measure of output method

= 36,000 × (25 / 100) = $9,000

Joint cost allocated to product Z under physical measure of output method

= 36,000 × (75 / 100) = $27,000

Under physical measure of output method $27,000 allocated to product Z and $9,000 is allocated to product Y. Product Y weighted under measure of output is 25% (25 / 100) and product Z weight is 75% (75 / 100).

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split-off point, the company incurs costs of $5,840. Product A
weighs 29 pounds, and Product B weighs 116 pounds. Product A sells
for $103 per pound, and Product B sells for $35 per pound.
Based on relative sales values at the split-off point, allocate
joint costs to Products A and B. (Round relative sales
value proportion to 4 decimal places eg.0.4525 and final answers to
0 decimal places.)...

Accustart Products produces two joint products (A and B). Prior
to the split-off point, the company incurs costs of $6,540. Product
A weighs 28 pounds, and Product B weighs 116 pounds. Product A
sells for $110 per pound, and Product B sells for $32 per
pound.
Based on relative sales values at the split-off point, allocate
joint costs to Products A and B. (Round relative sales
value proportion to 4 decimal places eg.0.4525 and final answers to
0 decimal places.)...

Allocating Joint Costs
(Appendix). Clemson Products produces two joint products,
product Y and Z. Prior to the split-off point, the company incurred
$60,000 in joint costs. Clemson Products produced 10,000 yards of
product Y and 30,000 yards of product Z produced. Product Y sells
for $4 per yard and product Z sells for $2 per yard.
Required:
Allocate joint costs to each product using the physical
quantities method (yards), and calculate the profit or loss for
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ABC Company produces three products in a joint production
process. At the split-off point, all three products are produced
further and then sold. Information about these products for 2019,
the most recent year, appears below: Product A Product B Product C
Units produced ............... 15,000 25,000 10,000 Selling price
................ $50 per unit $40 per unit $75 per unit Additional
processing costs .. $15 per unit $16 per unit $37.50 per unit Joint
costs for 2019 totaled $150,000. During 2019,...

ABC Company produces three products in a joint production process. At the
split-off point, all three products are produced further and then sold.
Information about these products for 2019, the most recent year, appears
below:
Product A Product B Product C
Units produced ............... 15,000 25,000 10,000
Selling price ................ $50 per unit $40 per unit $75 per unit
Additional processing costs .. $15 per unit $16 per unit $37.50 per unit
Joint costs for 2019 totaled $150,000.
During 2019,...

Sales-Value-at-Split-off Method Alomar Company manufactures four
products from a joint production process: barlon, selene, plicene,
and corsol. The joint costs for one batch are as follows: Direct
materials $60,000 Direct labor 36,000 Overhead 26,000 At the
split-off point, a batch yields 1,700 barlon, 2,300 selene, 2,200
plicene, and 4,000 corsol. All products are sold at the split-off
point: barlon sells for $18 per unit, selene sells for $22 per
unit, plicene sells for $30 per unit, and corsol sells 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...

ABC Company produces three products in a joint production
process. At the
split-off point, all three products are produced further and then
sold.
Information about these products for 2019, the most recent year,
appears
below:
Product A Product B Product
C
Units produced ...............
15,000
25,000 10,000
Selling price ................ $50 per
unit $40 per unit $75 per unit
Additional processing costs . $15 per unit $16 per
unit $37.50 per unit
Joint costs for 2019...

ABC Company produces three products in a joint production
process. At the split-off point, all three products are produced
further and then sold. Information about these products for 2019,
the most recent year, appears below: Product A Product B Product C
Units produced ............... 15,000 25,000 10,000 Selling price
................ $50 per unit $40 per unit $75 per unit Additional
processing costs .. $15 per unit $16 per unit $37.50 per unit Joint
costs for 2019 totaled $150,000. During 2019,...

Joint costing
Jill makes two products out of a joint process—products Beta
& Gamma. The joint (common) costs
incurred are $800,000 for a standard production run that
generates 70,000 pounds of Gamma and
30,000 pounds of Beta. Gamma sells for $9.00 per pound whereas
Beta sells for $7.00 per pound.
7) If there are no additional processing costs incurred after
the splitoff point, the amount of joint cost of
each production run allocated to Beta on a sales value at...

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