Homework Help is Here – Start Your Trial Now!
Business
Accounting
Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year just ended. 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. Further information follows. Product Pounds Produced Per-Pound Sales Price If Processed Further Sales Value Separable Cost A 40,000 $ 12 $ 410,000 $ 120,000 B 60,000 8 320,000 70,000 If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?

Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year just ended. 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. Further information follows. Product Pounds Produced Per-Pound Sales Price If Processed Further Sales Value Separable Cost A 40,000 $ 12 $ 410,000 $ 120,000 B 60,000 8 320,000 70,000 If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
See similar textbooks
icon
Related questions
Question

Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year just ended. 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. Further information follows.

Product

Pounds Produced

Per-Pound Sales Price

If Processed Further

Sales Value

Separable Cost

A

40,000

$ 12

$ 410,000

$ 120,000

B

60,000

8

320,000

70,000

If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?

Expert Solution
steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS