Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off Required: DF1 28,500 ? DF2 19,500 ? $ 572,250 $ 190,750 BP 16,500 ? $ 103,500 Total 64,500 $ 561,500 $ 866,500 Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. Joint Cost DF1 DF2 BP
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off Required: DF1 28,500 ? DF2 19,500 ? $ 572,250 $ 190,750 BP 16,500 ? $ 103,500 Total 64,500 $ 561,500 $ 866,500 Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. Joint Cost DF1 DF2 BP
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company
accounts for the revenues from its by-product sales as other income. Additional information follows:
Units produced
Allocated joint costs
Sales value at split-off
Required:
DF1
28,500
?
$572,250
DF2
19,500
?
$ 190,750
BP
16,500
?
$ 103,500
Total
64,500
$ 561,500
$ 866,500
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to
each of the joint products DF1 and DF2 and to the by-product, BP?
Note: Do not round intermediate calculations.
Joint Cost
DF1
DF2
BP
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