Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-productnamely AAA, is also produced during this process.The following costs are incurred during the joint production process before the split-off point:CostRaw materialsLabour costManufacturing overhead costNon-manufacturing overhead costRR2 000 000R1 300 000R3 500 000R700 000In addition, the following information is provided• There was no opening or closing inventory of any kind.• Product RFV is sold directly after split-off.• Product NJU requires further processing into product NJL at a cost of R120 000 before it is in asellable condition. No increase or decrease in volume occurs during this further processing.• The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000.• 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA wereproduced.⚫ Joint costs are allocated to joint products using the physical measure method.The total joint cost to be allocated to joint products isSelect one:a. R6 760 000b. None of the options○ c.R7 500 000d. R6 800 000e.R6 845 000

The objective of the question is to calculate the total joint cost to be allocated to the joint…

Answered: Khemikhale Ltd produces chemicals RFV…

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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Please show me your solution so I can check if mine is correct. Thank you! 1. ABC company manufactures X, Y, and Z from a joint process. Joint product costs were P60,000. Additional information are as follows:(see image) Assuming that joint costs are allocated using the physical measures (units produced) approach, what were the total costs allocated to productX ________________________ Y ______________________ Z ______________________
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
CONSO Inc. manufactures joint products ALT and TAB, and a by-product DEL. Costs are assigned to the joint products by the net realizable value or final market value method which considers further processing costs in subsequent operations. It is the policy of CONSO Inc. to account for its by-product by market value or reversal cost method or deduction of net realizable value of by-product from the joint manufacturing costs of main products. The total manufacturing costs for 100,000 units were Php 1,520,000.00 during the year. Production and costs data follow: (a)Product Name: ALT, units produced:60,000, sales price per unit: Php 70.00, Further processing cost per unit Php 20.00 (b)Product Name: TAB, units produced:30,000, sales price per unit: Php 25.00, Further processing cost per unit Php 5.00 (C)Product Name: DEL, units produced:10,000, sales price per unit: Php 10.00, Further processing cost per unit Php 30.00, Selling and admin expense per unit, Php 5.00. 1.What is the value of DEL…
TB MC Qu. 7-38 (Algo) Joint costs allocated to product X using the physical measure method: Split Company Split Company produces three products — X, Y, and Z - 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. Last year all three products were processed beyond split-off. Joint production costs for the year were $154,000. Sales values and costs needed to evaluate Split's production policy follow. Product X y Z Units Produced 11,000 5,500 11,000 O Multiple Choice $59,600. $26,800. The amount of joint costs allocated to product X using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): $30,800. $92,400. Sales Value at Split Off $ 48,500 40,500 50,000 $61,600. If Processed…
Inseparable Company produces products X and Y in a joint manufacturing process. The joint cost allocated to Product X is P15 and to Product Y is P10. At the point of splitting-off in the manufacturing process, Product Y can be sold for P15. The company is considering to incur additional processing cost of P4 for Product Y, after which the product can be sold for P22. Should Product Y be processed further or just sold at split-off point? Support your answer wirh computations and text.
Ardmore Company produces two main products jointly, A and B, and C, which is a by-product of B. A and B are produced from the same raw material. C is manufactured from the residue of the process creating B. Costs before separation are apportioned between the two main products by the net realizable value method. The net revenue realized from the sale of C is deducted from the cost of B. Data for April were as follows: Costs before separation P200,000 Costs after separation: A 50,000 B 32,000 C 4,000 Production for April, in pounds: A 800,000 B 200,000 C 20,000 Sales for April: A 640,000 pounds @ P0.4375 B 180,000 pounds @ 0.65 C 20,000 pounds @ 0.30 Determine the gross profit for April.
CARAMEL Inc. manufactures three joint products. The following production data were provided by CARAMEL Inc. for the current period: Product Name Units Produced X Y Z Joint product costs for the current period were as follows: Raw materials Direct labor Factory overhead Costs before separation Costs after separation: X 1,000 2,000 3,000 The company uses the net realizable value method for allocating joint costs. 8. What is the Gross profit/(loss) on the sale of all X products? Y Z Production for April, in pounds: Z Additional Processing Final Selling Price Cost after Split Off 9. What is the total gross profit (loss) on the sale of all the joint products? MACCHIATO Company produces two main products jointly. X and Y. and Z. which is a by- product of Y. X and Y are produced from the same raw material. Z is manufactured from the residue of the process creating Y. Sales for April: Costs before separation are apportioned between the two main products by the net realizable value method. The…
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. Units Sold Price (after addt'l processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off $ DBB-1 11,000 50 $282,000 11,000 $ $ DBB-2 17,000 20 $ 45 $ DBB-3 24,000 70 30 $ $114,000 $169,000 $ 565,000 17,000 24,000 52,000 $3,200,000 Total 50 52,000 The amount of joint costs allocated to product DBB-1 using the net realizable value method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
Please refer to the pictures for parts A and B. Part C is below: Cost Assignment Completed and transferred out EUP Cost per EUP Total cost Direct materials Conversion Total Completed and transferred out Ending work in process EUP Cost per EUP Total cost Direct materials $0.00 0.00 Conversion $0.00 0.00 Total costs accounted for Fields 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. DBB-1 DBB-2 DBB-3 Total Units Sold 18,800 28,200 40,200 87,200 Price (after additional processing) $ 65 $ 50 $ 75 Separable Processing cost $ 129,250 $ 51,700 $ 73,700 $ 254,650 Units Produced 18,800 28,200 40,200 87,200 Total Joint Cost $ 4,160,000 Sales Price at Split-off $ 25 $ 35 $ 55 The amount of joint costs allocated to product DBB-3 using the net realizable value method is:
:In Al-Waha Water Bottling Company, costs incurred for research and developments would be classified as a „Product- sustaining level activity a O .none of the given answers.b O .Unit level activity .cO .Organization- sustaining level activity d O Batch level activity .e O
ABC Company produces two main products and a by-product out of a joint process. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. ABC employs the physical units method to allocate joint pro- duction costs to the two main products. The net realizable value of the by-product is used to reduce the joint production costs before the joint costs are allocated to the main products. Da- ta regarding ABC's operations for the current month are presented below. During the month, ABC incurred joint production costs of P2,520,000. The main products are not mar- ketable at the split-off point and, thus, have to be processed further. First Main Product Second Main Product Monthly output in Kilos.. Selling price per Kilo.. Separable process costs. By-Product 60,000 P2 90,000 P30 150,000 P14 P540,000 P660,000 The amount of joint production cost that ABC would allocate to the Second Main Product by using the physical…

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