SE Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May, SE bought 11,600 inputs of flour for $88,500. SE spent another $48,300 on the special sifting process. The baking flour can be sold for $3.70 per cup and the bread flour for $4.65 per cup. 1 2 SE puts the baking flour through a second process so it is super fine. This costs an additional $1 per cup of baking flour and the process yields ½ ½ cup of super-fine baking flour for every one cup of baking flour used. The super-fine baking flour sells for $9.60 per cup. Read the requirements. Super-rine Baking Flour Bread Flour Total Final sales value of total production $ 167,040 $ 485,460 $ 34,800 $ 0 Deduct separable costs Net realizable value at splitoff $ 132,240 $ 485,460 $ 617,700 Weighting 0.2141 0.7860 Joint costs allocated 29,289 $ 107,525 $ 136,800 Requirement 1d. Allocate the $136,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places, X.XX%. Round your answers to the nearest whole dollar.) Final sales value of total production Deduct gross margin, using overall gross-margin percentage of sales Total production costs Deduct separable costs Joint costs allocated Super-Fine Baking Flour Bread Flour Total 167040 485460
SE Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May, SE bought 11,600 inputs of flour for $88,500. SE spent another $48,300 on the special sifting process. The baking flour can be sold for $3.70 per cup and the bread flour for $4.65 per cup. 1 2 SE puts the baking flour through a second process so it is super fine. This costs an additional $1 per cup of baking flour and the process yields ½ ½ cup of super-fine baking flour for every one cup of baking flour used. The super-fine baking flour sells for $9.60 per cup. Read the requirements. Super-rine Baking Flour Bread Flour Total Final sales value of total production $ 167,040 $ 485,460 $ 34,800 $ 0 Deduct separable costs Net realizable value at splitoff $ 132,240 $ 485,460 $ 617,700 Weighting 0.2141 0.7860 Joint costs allocated 29,289 $ 107,525 $ 136,800 Requirement 1d. Allocate the $136,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places, X.XX%. Round your answers to the nearest whole dollar.) Final sales value of total production Deduct gross margin, using overall gross-margin percentage of sales Total production costs Deduct separable costs Joint costs allocated Super-Fine Baking Flour Bread Flour Total 167040 485460
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:SE Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May, SE bought 11,600 inputs of
flour for $88,500. SE spent another $48,300 on the special sifting process. The baking flour can be sold for $3.70 per cup and the bread flour for $4.65 per cup.
1
2
SE puts the baking flour through a second process so it is super fine. This costs an additional $1 per cup of baking flour and the process yields ½ ½ cup of super-fine baking flour for
every one cup of baking flour used. The super-fine baking flour sells for $9.60 per cup.
Read the requirements.
Super-rine
Baking Flour
Bread Flour
Total
Final sales value of total production
$
167,040 $
485,460
$
34,800 $
0
Deduct separable costs
Net realizable value at splitoff
$
132,240 $
485,460 $
617,700
Weighting
0.2141
0.7860
Joint costs allocated
29,289 $
107,525 $
136,800
Requirement 1d. Allocate the $136,800 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation.
(Round the gross margin percentage to two decimal places, X.XX%. Round your answers to the nearest whole dollar.)
Final sales value of total production
Deduct gross margin, using overall
gross-margin percentage of sales
Total production costs
Deduct separable costs
Joint costs allocated
Super-Fine
Baking Flour
Bread Flour
Total
167040
485460
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education