Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Production: A 1500 liters, B 500 liters. The joint cost was $10000. There were no inventory balances of A and B. Product A may be processed further to yield 1500 liters of Product Z5 for an additional processing cost of $2 per liter. Product Z5 is sold for $20 per liter. There was no beginning inventory and ending inventory was 150 liters. Product B may be processed further to yield 500 liters of Product W3 for an additional processing cost of $4. Product W3 is sold for $30 per liter. There was no beginning inventory and ending inventory was 50 liters. ---using constant gross-margin percentage NRV method, gross margin of X: Select one: O a. $6500 O b. $14600 O c. $5400 O d. $18900

Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Production: A 1500 liters, B 500 liters. The joint cost was $10000. There were no inventory balances of A and B. Product A may be processed further to yield 1500 liters of Product Z5 for an additional processing cost of $2 per liter. Product Z5 is sold for $20 per liter. There was no beginning inventory and ending inventory was 150 liters. Product B may be processed further to yield 500 liters of Product W3 for an additional processing cost of $4. Product W3 is sold for $30 per liter. There was no beginning inventory and ending inventory was 50 liters. ---using constant gross-margin percentage NRV method, gross margin of X: Select one: O a. $6500 O b. $14600 O c. $5400 O d. $18900

Name: Beverage Drink Company processes directmaterials up to the splitoff p
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Description: Beverage Drink Company processes directmaterials up to the splitoff point where twoproducts, A and B, are obtained. Thefollowing information was collected for themonth of July: Production: A 1500 liters, B500 liters. The joint cost was $10000.There

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 1MAD: Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit...

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Beverage Drink Company processes direct materials up to the split - off point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 3,000 liters (with 25% shrinkage) Production: A 1,800 liters 450 liters Sales: А $15 per liter B $10 per liter The cost of purchasing 3,000 liters of direct materials and processing it up to the split- off point to yield a total of 2,250 liters of good products was $9,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,700 liters of Product Z5 for an additional processing cost of $190. Product Z5 is sold for $70 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 350 liters of Product W3 for an additional processing cost of $320. Product W3 is sold for $75 per liter. There was no beginning inventory and ending inventory was 25 liters. If Product Z5 and Product W3…
Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 2,500 liters (with 20% shrinkage) Production: A 1,500 liters B 500 liters Sales: A $15.00 per liter B $10.00 per liter The cost of purchasing 2,500 liters of direct materials and processing it up to the splitoff point to yield a total of 2,000 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,375 liters of Product Z5 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed…
Cola Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 2,500 liters (with 20% shrinkage) Production: A 1,500 liters B 500 liters $15.00 per liter $10.00 per liter Sales: A В The cost of purchasing 2,500 liters of direct materials and processing it up to the splitoff point to yield a total of 2,000 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,375 liters of Product Z5 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 375 liters of Product W3 for an additional processing cost of $275. Product W3 is sold for $30.00 per liter. There was no beginning inventory and ending inventory was 25 liters. 5. When using sales…
Cola Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 2,500 liters (with 20% shrinkage) 1,500 liters Production: A В 500 liters $15.00 per liter $10.00 per liter Sales: A В The cost of purchasing 2,500 liters of direct materials and processing it up to the splitoff point to yield a total of 2,000 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,375 liters of Product Z5 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 375 liters of Product W3 for an additional processing cost of $275. Product W3 is sold for $30.00 per liter. There was no beginning inventory and ending inventory was 25 liters.
Corp purchases trees from Vendor and processes them up to the splitoff point where two products (paper and pencil casings) are obtained and sold separately. The following information was collected for the month of October: Trees processed: 250 trees Production: paper pencil casings Sales: paper pencil casings 180,000 sheets 180,000 174,000 at $0.12 per page 178,500 at $0.15 per casing The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Corp's accounting department reported no beginning inventory. 1) What is the total sales value at the splitoff point for paper? 2) What is the total sales value at the splitoff point of the pencil casings? 3) What are the paper's and the pencil's approximate weighted cost proportions using the sales value at splitoff method, respectively? 4) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for…
Corp purchases trees from Vendor and processes them up to the splitoff point where two products (paper and pencil casings) are obtained and sold separately. The following information was collected for the month of October: Trees processed: 250 trees Production: paper pencil casings Sales: paper pencil casings 180,000 sheets 180,000 174,000 at $0.12 per page 178,500 at $0.15 per casing The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Corp's accounting department reported no beginning inventory.
Torid Company processes 18,700 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $10 per gallon and Product Y, the main product, sells for $150 per gallon. The following information is for December: Beginning Ending Production Sales Inventory Inventory Product X: 5,975 5,800 0 175 Product Y: 10,575 10,655 100 20 The manufacturing costs totaled $30,000. The production method will report Product X in the balance sheet at ________.
Answer the following question using the information below: The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 750,000 gallons (727,500 gallons of good product) Production: Cream 442,500 gallons Liquid skim 285,000 gallons Sales: Cream 421,500 at $110 per gallon Liquid skim 273,000 at $100 per gallon The cost of purchasing 750,000 gallons of direct materials and processing it up to the split-off point to yield a total of 727,500 gallons of good product was $2,280,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to…
The Alfarm Corporation processes raw milk up to the splitoff point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 750,000 gallons (727,500 gallons of good product) Production: Cream 442,500 gallons Liquid skim 285,000 gallons Sales: Cream 421,500 at $110 per gallon Liquid skim 273,000 at $100 per gallon The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 727,500 gallons of good product was $2,280,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim? A) $1,386,804 and $893,196 B) $1,140,000 and $1,140,000 C) $1,368,000 and $912,000 D) $1,254,00 and $1,026,000 Please don't provide answer in image format thank you
Torid Company processes 18,800 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $9 per gallon and Product Y, the main product, sells for $170 per gallon. The following information is for December: Product X: Product Y: Production 6,175 10,475 Sales 6,000 10,485 Beginning Inventory 0 50 Ending Inventory 175 40 The manufacturing costs totaled $27,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of sale?
nt Bismite Corporation purchases trees from Cheney lumber and processes them up to the split – off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 340 trees Production: рaper 150,000 sheets pencil casings 150,000 Sales: раper 140,000 at $0.20 per page pencil casings 147,500 at $0.24 per casing The cost of purchasing 340 trees and processing them up to the split - off point to yield 150,000 sheets of paper and 150,000 pencil casings is $14,500. Bismite's accounting department reported no beginning inventory. If the sales value at split - off method is used, what is the approximate production cost for each pencil casing? (Round intermediary percentages to the nearest hundredth.)
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 320 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 169,000 at $0.10 per page pencil casings 177,500 at $0.13 per casing The cost of purchasing 320 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively?