None esDeming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional informationfollows:ProductUnitsProducedSales Value atSplit-OffAdditional CostsIf Processed FurtherSales ValuesW-1064,400W-2046,000$ 384,000330,000$ 41,400$ 420,00033,000384,000W-3036,800222,00022,200276,000W-4036,800184,000168,000$1,104,00013,800$110,400184,000$1,264,000Required:Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?OW-10OW-20O W-30O W-40O None of the products

The joint cost refers to the common shared cost incurred in the production of units. This cost…

Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: If Processed Further Product Units Produced Sales Value at Split-Off W-10 64,400 $ 384,000 Additional Costs $ 41,400 Sales Values $ 420,000 W-20 46,000 330,000 33,000 384,000 W-30 36,800 222,000 22,200 276,000 W-40 36,800 184,000 168,000 $1,104,000 13,800 $110,400 184,000 $1,264,000 Required: Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?

Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: If Processed Further Product Units Produced Sales Value at Split-Off W-10 64,400 $ 384,000 Additional Costs $ 41,400 Sales Values $ 420,000 W-20 46,000 330,000 33,000 384,000 W-30 36,800 222,000 22,200 276,000 W-40 36,800 184,000 168,000 $1,104,000 13,800 $110,400 184,000 $1,264,000 Required: Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 1CE: Thomas Corporation produces heating units. The following values apply for a part used in their...

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Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $ 56,000.00 $ 336,000.00 $ 36,000.00 $ 366,000.00 w-20 $ 40,000.00 $ 288,000.00 $ 28,800.00 $ 336,000.00 w-30 $ 32,000.00 $ 192,000.00 $ 19,200.00 $ 240,000.00 w-40 $ 32,000.00 $ 144,000.00 $ 12,000.00 $ 160,000.00 $ 160,000.00 $ 960,000.00 $ 96,000.00 $ 1,102,000.00 Required :- Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)? Explain. Does your answer depend on the method used to allocate the joint cost? Why?
Deming & Sons manufactures four grades of lubricant, W.10, W-20, W-30, and W 40, from a joint process. Additional information follows. IE Processed Further Unita Sales Value Product Produced at Split-oft Additional Conta Salen Values $ 368, 000 316, 000 212,000 160, 000 61,056, 000 $ 402,000 368, 000 264,000 176, 000 W-10 61, 600 44, 000 35,200 35,200 $ 39, €00 31, 600 21,200 13,200 0105, 600 W-20 W-30 W-40 176,000 41,210, 000 Required: Assuming that total joint costs of $443,520 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculetions.) Joint Costs Allocated Product W-10 W-20 W-30 W40
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $ 56,000.00 $ 336,000.00 $ 36,000.00 $ 366,000.00 w-20 $ 40,000.00 $ 288,000.00 $ 28,800.00 $ 336,000.00 w-30 $ 32,000.00 $ 192,000.00 $ 19,200.00 $ 240,000.00 w-40 $ 32,000.00 $ 144,000.00 $ 12,000.00 $ 160,000.00 $ 160,000.00 $ 960,000.00 $ 96,000.00 $ 1,102,000.00 Required :-Assuming that total joint costs of $384,000 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product?
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales value at split-off Additional Cost sales value W-10 $ 56,000.00 $ 336,000.00 $ 36,000.00 $ 366,000.00 w-20 $ 40,000.00 $ 288,000.00 $ 28,800.00 $ 336,000.00 w-30 $ 32,000.00 $ 192,000.00 $ 19,200.00 $ 240,000.00 w-40 $ 32,000.00 $ 144,000.00 $ 12,000.00 $ 160,000.00 $ 160,000.00 $ 960,000.00 $ 96,000.00 $ 1,102,000.00 Required:-Assuming that total joint costs of $384,000 were allocated using the physical quantities method, what joint costs were allocated to each product?
Vicerelandu, Inc. manufactures X, Y, and Z from a joint process. Joint product costs were P60,000. Additional information are as follows:(see pic) 1. Assuming that joint costs are allocated using the physical measures (units produced) approach, what were the total costs allocated to product X ________________________ Y ______________________ Z ______________________2. Assuming that joint product costs are allocated using the relative sales value at split-off approach, what were the total costs allocated to product X_________________________ y ______________________ Z ______________________
Kapangan Inc. manufactures products R, S and T from a joint process. Additional information follows: wwwwww u www R ТОTAL Units 8,000 4,000 14,000 P18,000 P120,000 ? P200,000 2,000 Joint Costs ? ? Sales value @ split-off P120,000 ? Further Processing costs P14,000 P10,000 P6,000 P30,000 Sales value of FG P140,000 Р60,000 P50,000 P250,000 Using the sale value at split-off, how much is the: joint cost allocated to S?
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: Units produced Joint costs 12,000 144,000 в 8,000 60,000 с 4,000 36,000 Total 24,000 240,000 Sales value before additional processing 240,000 100,000 60,000 400,000 Additional costs for further processing Sales value if processed further 28,000 280,000 20,000 120,000 12,000 70,000 60,000 470,000 Required: a. Which, if any, of products A, B, and C should be processed further and then sold? b. Keeping in view the answer of "part a", write down your critical feedback to support your answer (Word limit Max 200)
ESBA Company produced two joint products A and E. and by-products and D from the same raw materials with Jointcosts P200.000. The ertity uses net realizabe value in allocatingjoirt costs to joint products. Other informaticin are as foilows: Units produced (20.000: 30.000: 5.000 and 5.000) Unit soid (18.000. 25.000: 5.000 and 5.000): Final unit selling prices (P25.00: P20.00. P200 and P1.50): Further processing costs (PI50.000; P210.0oC: P5.000 and P4.000); Selling and Administrative expenses (P15.000: P21.000: PS00 and P400): Desred profiton Cand D (P2.000 and P1500). irthenetproceeds of sale of by-products are prasented as reduetion from cost of goods sold of the main products, what is the amount of operating proft from joint products orly? P438.589 PABR300 P432836 F430,989
Thomas Corporation produces heating units. The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = 45 C = 4.50 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total cost associated with an order size of 250 units. 2. Calculate the EOQ and its associated ordering cost, carrying cost, and total cost. Compare and comment on the EOQ relative to the current order quantity. 3. What if Thomas enters into an exclusive supplier agreement with one supplier who will supply all of the demands with smaller, more frequent orders? Under this arrangement, the ordering cost is reduced to 0.45 per order. Calculate the new EOQ and comment on the implications.
The Trece Co. manufactures joint products X and Y as well as by-product Z. Cumulative costs data for the period show P204,000 representing 20,000 units completed processed through the Refining Department at an average cost of P10.20. Costs are assigned to X and Y by the market value method which considers further processing costs in subsequent operations.Additional data: Z X YQuantity processed 2,000 units 8,000 units 10,000 unitsSales price per unit P5 P20 P25Further processing cost per unit 1 5 7Marketing and administrativeexpense per unit 1Operating profit per unit 1 Required:a. Assuming by-product value is material determine the joint cost allocated to Z using Net realizable value method and joint cost to X and Y.b. Assuming by-product value is immaterial and insignificant,…
Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Total Costs $ 2,515 3,235 Y= 1234567899 10 Units Produced 0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 3,955 4,675 5,395 6,115 6,835 7,555 8,275 8,995 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. X
Johns Company manufactures products R, S, and I from a joint process. The following information is available: Product R. Total Units produced 12,000 ? 24,000 ? $50,000 $200,000 ? $120,000 Sales value at split-off Joint costs $ 48,000 Sales value if processed further Additional costs if processed further $ 18,000 $14,000 $10,000 $ 42,000 $110,000 $90,000 $60,000 $260,000 Assuming that joint product costs are allocated using the relative-sales-value at split-off approach, what was the sales value at split-off for products R and S? Product R Product S $ 55,000 $ 63,000 $ 80,000 $ 91,000 A) $ 75,000 B) $81,000 C) $70,000 D) $83,000 E) $101,000 $ 92,000