Vishnu The following information relates to a joint production process for three products, with a total joint production cost of$180,000. There are no separable processing costs for any of the three products.Product123Sales Value atSplit-Off$ 252,000Units atSplit-Off35072,0001,05036,0002,100$ 360,0003,500Assume that the total sales value at the split-off point for product 1 is $108,000 instead of $252,000 and the sales value of product 3 is$3,600 instead of $36,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product anduses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products usingthe sales value at split-off method?ProductAllocated JointCost123

The objective of the question is to calculate the amount of joint cost allocated to each product…

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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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[The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $120,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $180,000 170 2 $36,000 510 3 $24,000 1,020 $240,000 1,700 Assume that the total sales value at the split-off point for product 1 is $84,000 instead of $180,000 and the sales value of product 3 is $2,400 instead of $24,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method?
The following information relates to a joint production process for three products, with a total joint production cost of $125,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 150,000 Product 1 2 3 62,500 37,500 $ 250,000 Assume that the total sales value at the split-off point for product 1 is $62,500 instead of $150,000 and the sales value of product 3 is $2,500 instead of $37,500. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 360 840 1,200 2,400 Allocated Joint Cost
Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $180,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Split-Off $ 252,000 Product 1 2 3 72,000 36,000 $360,000 Assume that the total sales value at the split-off point for product 1 is $108,000 instead of $252,000 and the sales value of product 3 is $3,600 instead of $36,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses an asset recognition method (the NRV method) for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method? Units at Split-Off 350 1,050 2,100 3,500 Allocated Joint Cost
Product 1 2 3 Allocated Joint Cost
Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $125,000. There are no separable processing costs for any of the three products. Product 1 2 Sales Value at Units at Split-Off $150,000 62,500 37,500 $ 250,000 Split-Off 360 840 1,200 2,400 Assume that the total sales value at the split-off point for product 1 is $62,500 instead of $150,000 and the sales value of product 3 is $2,500 instead of $37,500. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (.e. 24.35%) and final answers to nearest whole dollar amount.)
The following information relates to a joint production process for three products, with a total joint production cost of $200,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 280,000 585 2 80,000 1,170 3 40,000 2,145 $ 400,000 3,900 Assume that the total sales value at the split-off point for product 1 is $120,000 instead of $280,000 and the sales value of product 3 is $4,000 instead of $40,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method?
Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $140,000. There are no separable processing costs for any of the three products. Product 1 2 3 Product 1 2 3 Sales Value at Split-Off $ 154,000 84,000 42,000 $ 280,000 Assume that the total sales value at the split-off point for product 1 is $56,000 instead of $154,000 and the sales value of product 3 is $2,800 instead of $42,000. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.) Units at Split-Off 405 945…
The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 227,500 680 2 87,500 1,020 3 35,000 1,700 $ 350,000 3,400 Assume that the total sales value at the split-off point for product 1 is $87,500 instead of $227,500 and the sales value of product 3 is $3,500 instead of $35,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method?
Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product 123 Sales Value at Split-Off $ 227,500 87,500 35,000 $ 350,000 Product 1 2 3 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? Units at Split-Off 680 1,020 1,700 3,400 Percent of Sales Value % % %
Required information [The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint production cost of $115,000. There are no separable processing costs for any of the three products. Product 1 2 3 Sales Value at Units at Split-Off $161,000 Product 1 2 3 34,500 34,500 $230,000 Split-Off 440 770 990 2,200 What percentage of joint cost is allocated to each of the three products using the physical units method? Percent of Sales Units % % %
The following information relates to a joint production process for three products, with a total joint production cost of $145,000. There are no separable processing costs for any of the three products. Sales value at split off Units at Split off 1 $174,000 560 2 72,500 980 3 43,500 1260 total 290,000 2800 Assume that the total sales value at the split-off point for product 1 is $72,500 instead of $174,000 and the sales value of product 3 is $2,900 instead of $43,500. Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method? (Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.)
The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 227,500 680 2 87,500 1,020 3 35,000 1,700 $ 350,000 3,400 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method?

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