Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 19, Problem 4CMA
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for $2.000.
- a. $500.
- b. $4,000.
- c. $1,000.
- d. $4,500.
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Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchase in 1,000-gallon drums for $2,000. Processing costs are $3,000 to process the 1,000 gallons of Duo into 800 gallons of Big and
200 gallons of Mini. The selling price is $9 per gallon for Big and $4 per gallon for Mini. If the sales value at split-off method is used to allocate joint costs to the final products, the per-gallon cost (rounded to the
nearest cent) of producing Big is
Select one:
a. $5.00 per gallon.
b. $5.63 per gallon.
c. $4.50 per gallon. X
d. $3.38 per gallon.
Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs 4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is 10 per gallon for Product A and 14 for Product B. Product B requires an additional process beyond split-off at a cost of 2 per gallon before it can be sold. What is Idaho's cost to produce 1,000 gallons of Product B?
A. 5,040
B. 4,360
C. 4,860
D. 5,360
E. 3,360
Chemical Corporation produces liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative sales
value at split-off. It costs $4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market
value at split-off is $10 per gallon for Product A and $14 for Product B. Product B requires an additional process beyond split-off at a
cost of $2 per gallon before it can be sold. What is Chemical's cost to produce 1,000 gallons of Product B?
Choose...
Choose...
$4,860
$5,360
$3,360
$5,040
Chapter 19 Solutions
Financial And Managerial Accounting
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