The joint cost allocated to product M-10 at Oak View Chemicals for a given batch is:

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Subject: acounting

Exercise 11-41 (Algo) Net Realizable Value Method: Multiple Choice (LO 11-7)   Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,140 gallons of Chem-X with a cost of $102,600. Additional information regarding a batch follows.         If Processed Further Product Units Produced Unit Sales Value at Split-off Additional Costs (Per Unit) Sales Value (Per Unit) M-10   25,080   $ 5.00   $ 2.00   $ 6.00   M-20   15,960   $ 10.00   $ 4.00   $ 16.00   B-60   5,700   $ 0.50     NA     NA       Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income.  Required: The joint cost allocated to product M-10 at Oak View Chemicals for a given batch is Multiple Choice   $62,700   $45,144   $43,890…

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Dinesh

Joint Cost Allocation—Market Value at Split-off Method Sugar Sweetheart, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split-off point, raw sugar is immediately sold for $0.20 per pound, while granulated and caster sugar are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $0.25 at the split-off point. One batch of joint production costs $1,640 and yields 3,000 pounds of raw sugar, 3,600 pounds of granulated sugar, and 2,000 pounds of caster sugar at the split-off point. Allocate the joint costs of production to each product using the market value at split-off method. Joint Product Allocation Raw sugar $fill in the blank 1 Granulated sugar fill in the blank 2 Caster sugar fill in the blank 3 Totals $fill in the blank 4

Sunland Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Product 10 Product 12 Product 14 (c) Product Your answer is partially correct. Product 10 Product 12 Product 14 $ Sales Value at Split-Off Point $59,700 $ 15,800 $ 55,400 Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) Cost to Process Further eTextbook and Media $100,100 30,800 149,700 Sales Value after Further Processing $191,000 34,700 Decision 214,000 Should be processed further Should be sold at the split-off point Should be processed further Assistance Used

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