None Barbara started as an intern for Marigold Enterprises last month, and this is the first time she is able to see how the joint process costs are initially determined and howthey are subsequently divvied up. Her mentor shows her the source documents for the DM, DL, and MOH costs that are necessary for the process to work (adding upto $45,000). This joint process results in three different products, two of which are intentionally produced (Sift and Rift) and one that is a by-product (Nilt). Of thesethree products, Sift is ready for sale immediately after the joint process. Rift and Nilt, however, are both further processed (with no change in volume) in order togenerate a reasonable value for them. While watching her supervisor work through the calculations, Barbara learns that the company uses the NRV method forallocating joint costs. The quantities and values for each product at various processing stages are as follows.Quantity at Split-OffSales Value at Split-OffFurther Processing CostFinal Sales ValueSift2,900 units$10 per unitn/an/aRift2,500 unitsn/a$2 per unit$8 per unitNilt470 unitsn/a$1 per unit$3 per unit(a)Using the production method of accounting for by-products, determine how much of the joint cost Barbara will allocate to each product. (Round proportion to 4decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.)Under the production methodShare of joint costs$SiftRift$$Nilt1:45 AM

Joint cost refers to the cost that a company incurs to manufacture two or more products that are…

Barbara started as an intern for Marigold En they are subsequently divvied up. Her mento to $45,000). This joint process results in thre three products, Sift is ready for sale immedia generate a reasonable value for them. While allocating joint costs. The quantities and valu Quantity at Split-Off Sales Va Sift 2,900 units Rift 2,500 units Nilt 470 units (a) Using the production method of accountin decimal places, eg. 0.2516 and final answers Under the production method Share of joint costs $

Barbara started as an intern for Marigold En they are subsequently divvied up. Her mento to $45,000). This joint process results in thre three products, Sift is ready for sale immedia generate a reasonable value for them. While allocating joint costs. The quantities and valu Quantity at Split-Off Sales Va Sift 2,900 units Rift 2,500 units Nilt 470 units (a) Using the production method of accountin decimal places, eg. 0.2516 and final answers Under the production method Share of joint costs $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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