Homework Help is Here – Start Your Trial Now!
Business
Accounting
Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method.

Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6EA: Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in...
See similar textbooks
icon
Related questions
Question
Tulsa Milling buys oats at $0.60 per pound and produces TPM Oat Flour, TPM Oat Flakes, and TPM Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per pound. The oat flour can be sold for $1.50 per pound, the oat bran for $2.00 per pound. Each pound of oats has 0.2 pounds of oat bran and 0.8 pounds of oat flour. A pound of oat flour can be made into oat flakes for a fixed cost of $240,000 plus a variable cost of $0.60 per pound. Tulsa Milling plans to process 1 million pounds of oats in 20X0, at a purchase price of $600,000. Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method. Requirement 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. (Round the weighting to three decimal places.) Allocation of joint costs Oat flour Oat bran Requirement 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. (Round the weighting to three decimal places.) Relative sales value Allocation of at split-off joint costs Oat flour Oat bran Pounds Weighting Oat flakes Oat bran Weighting Requirement 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method. (Round the weighting to three decimal places.) Relative sales value at split-off Weighting Allocation of joint costs BLACKBOX AI
Transcribed Image Text:Tulsa Milling buys oats at $0.60 per pound and produces TPM Oat Flour, TPM Oat Flakes, and TPM Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per pound. The oat flour can be sold for $1.50 per pound, the oat bran for $2.00 per pound. Each pound of oats has 0.2 pounds of oat bran and 0.8 pounds of oat flour. A pound of oat flour can be made into oat flakes for a fixed cost of $240,000 plus a variable cost of $0.60 per pound. Tulsa Milling plans to process 1 million pounds of oats in 20X0, at a purchase price of $600,000. Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method. Requirement 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. (Round the weighting to three decimal places.) Allocation of joint costs Oat flour Oat bran Requirement 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. (Round the weighting to three decimal places.) Relative sales value Allocation of at split-off joint costs Oat flour Oat bran Pounds Weighting Oat flakes Oat bran Weighting Requirement 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method. (Round the weighting to three decimal places.) Relative sales value at split-off Weighting Allocation of joint costs BLACKBOX AI
Expert Solution
steps

Step by step

Solved in 5 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS