The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product 1 2 23 Sales Value at Split-Off $ 181,500 99,000 49,500 $ 330,000 Units at Split-Off 320 960 1,920 3,200 Assume that the total sales value at the split-off point for product 1 is $66,000 instead of $181,500 and the sales value of product 3 is $3,300 instead of $49,500. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.)
The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product 1 2 23 Sales Value at Split-Off $ 181,500 99,000 49,500 $ 330,000 Units at Split-Off 320 960 1,920 3,200 Assume that the total sales value at the split-off point for product 1 is $66,000 instead of $181,500 and the sales value of product 3 is $3,300 instead of $49,500. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Product
1
2
3
Allocated Joint
Cost
Transcribed Image Text:The following information relates to a joint production
process for three products, with a total joint production
cost of $165,000. There are no separable processing costs
for any of the three products.
Product
1
23
2
3
Sales Value at
Split-Off
$ 181,500
99,000
49,500
$ 330,000
Units at
Split-Off
320
960
1,920
3,200
Assume that the total sales value at the split-off point for product 1 is
$66,000 instead of $181,500 and the sales value of product 3 is $3,300
instead of $49,500. Assume also that the firm treats product 3 as a joint
product and uses the net realizable value method for accounting for joint
costs. There are no separable processing costs for product 3. What
amount of joint costs would be allocated to the three products using the
relative sales value method? (Round your intermediate percentage values
to 2 decimal places (i.e. 24.35%) and final answers to nearest whole
dollar amount.)
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