Fact Pattern:Atlas Foods produces the following threesupplemental food products simultaneouslythrough a refining process costing $93,000.The joint products, Alfa and Betters, have a finalselling price of $4 per pound and $10 perpound, respectively, after additional processingcosts of $2 per pound of each product areincurred after the split-off point. Morefeed, a by-product, is sold at the split-off point for $3 perpound.O A. $60,000$31,000$3,000$30,000O B.C.AlfaD.BettersAssuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Alfa using the net realizablevalue method is10,000 pounds of Alfa, a popular but relatively raregrain supplement having a caloric value of4,400 calories per pound5,000 pounds of Betters, a flavoring material high incarbohydrates with a caloric value of 11,200 caloriesper poundMorefeed 1,000 pounds of Morefeed, used as a cattle feedsupplement with a caloric value of 1,000 calories perpound

Joint costs encompass expenses associated with producing multiple products concurrently. The…

Answered: Assuming Atlas Foods inventories…

Assuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Alfa using the net realizable value method is A. $60,000 B. $31,000 $3,000 O D. $30,000 C.

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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Atlas Foods produces three supplemental food products simultaneously through a refining process costing $93,000. The joint products, Alfa and Betters, have a final selling price of $4 per pound and $10 per pound, respectively, after additional processing costs of $2 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split- off point for $3 per pound. Additional information are as follows: Alfa - 10,000 pounds of Alfa, a popular but relatively rare grain supplement of having a caloric value of 4,400 calories/pound. Betters - 5,000 pounds of Betters, a flavouring material high in carbohydrates with a caloric value of 11,200 calories/pound. Morefeed - 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories/pound. Questions: 1. Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using the RV method is?
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