Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off DBB-1 18,000 $ 65 $ 130,000 18,000 $25 DBB-2 27,000 $ 50 $ 64,000 27,000 $ 35 The amount of joint costs allocated to product DBB-1 using the physical measure method is: DBB-3 39,000 $75 $ 86,000 39,000 $ 55 Total 84,000 $ 280,000 84,000 $ 3,700,000

Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off DBB-1 18,000 $ 65 $ 130,000 18,000 $25 DBB-2 27,000 $ 50 $ 64,000 27,000 $ 35 The amount of joint costs allocated to product DBB-1 using the physical measure method is: DBB-3 39,000 $75 $ 86,000 39,000 $ 55 Total 84,000 $ 280,000 84,000 $ 3,700,000

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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Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 16,000 25,000 36,000 77,000 Price (after addt’l processing) $ 30 $ 15 $ 40 Separable Processing cost $ 179,000 $ 72,000 $ 107,000 $ 358,000 Units Produced 16,000 25,000 36,000 77,000 Total Joint Cost $ 3,600,000 Sales Price at Split-off $ 20 $ 30 $ 50 The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…
TB MC Qu. 7-66 (Algo) Joint costs allocated to product DBB-1 using the physical measure method: Double Company Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split- off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off Multiple Choice $783,333. $812,973. $1,727,568. The amount of joint costs allocated to product DBB-1 using the physical measure method is: $1,253,333. DBB-1 19, 200 $ 65 $ 142,000 19, 200 $1,219,459. $ 25 DBB-2 28,800 $ 50 $ 76,000 28,800 $ 35 DBB-3 40,800 $75 $ 98,000 40,800 $ 55 Total 88,800 $ 316,000 88,800 $ 3,760,000
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