Subject - account Please help me. Thankyou. Lipton Liquids produces three products by a joint productionprocess. Raw materials are put into production in Department 1,and at the end of processing in this department, three productsappear. Alpha is sold at the split-off point with no furtherprocessing. Beta and Gamma require further processing beforethey are sold. Beta is processed in Department 2, and Gamma isprocessed in Department 3. Lipton Liquids uses the estimated netrealizable value method of allocating joint production costs.No inventories were on hand at July 1, the beginning of thequarter. No raw material was on hand at September 30. All unitson hand at September 30 were fully complete as to processing.Following is a summary of costs and other data for the periodended September 30:ProductsUnits soldUnits on hand at September 30Sales revenuesRequired A Required B Required CAlpha28,00070,000$ 126,000DepartmentsRaw material costDirect labor costManufacturing overheadRequired:a. Determine the following amounts for each product: (1) estimatednet realizable value used for allocating joint costs, (2) joint costsallocated to each of the three products, (3) cost of goods sold,and (4) finished goods inventory costs, September 30.b. Assume that the entire output of Alpha could be processedfurther at an additional cost of $12 per unit and then sold for$16.30 per unit. Compute the incremental income (loss) fromfurther processing Alpha.c. Considering the results of part b, should Lipton Liquids processAlpha further?1$ 470,400201,60084,000ProductAlphaEstimated NetRealizableValues2Joint CostsBeta82,6000$ 743,400$0339, 78088,620Complete this question by entering your answers ibelow.3Determine the following amounts for each product: (1) esrealizable value used for allocating joint costs, (2) joint c-each of the three products, (3) cost of goods sold, and (4inventory costs, September 30.Cost of GoodsSold$0805,350307,650Note: Do not round intermediate calculations. Round youthe nearest whole dollar amounts.Gamma98,00056,000$ 1,029,000EndingInventory

Joint costs can be allocated on the basis of the Net Realizable Value. In this method, the net…

Following is a summary of costs and other data for the period ended September 30: Products Units sold Units on hand at September 30 Sales revenues Departments Raw material cost Direct labor cost Manufacturing overhead Alpha 28,000 70,000 $ 126,000 1 $ 470,400 201,600 84,000 2 Beta. 82,600 0 $ 743,400 $0 339,780 88,620 3 $0 805,350 307,650 Gamma 98,000 56,000 $ 1,029,000

Following is a summary of costs and other data for the period ended September 30: Products Units sold Units on hand at September 30 Sales revenues Departments Raw material cost Direct labor cost Manufacturing overhead Alpha 28,000 70,000 $ 126,000 1 $ 470,400 201,600 84,000 2 Beta. 82,600 0 $ 743,400 $0 339,780 88,620 3 $0 805,350 307,650 Gamma 98,000 56,000 $ 1,029,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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