Using a physical measurement method, what amount of joint processing cost is allocated to product B?Using sales value at split-off, what amount of joint processing cost is allocated to Product B? Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000Round to the nearest peso)Product Barrels SP @ Split-Off Pt.Cost to sell @ Split-off Separable Cost Final sales priceA750P10.00P6.50P2.00P13.501,0008.004.002.5010.001,40011.007.004.0015.50D2,00015.009.504.5019.50If Peter Company sells the products after further processing, the following costs to sell will be incurred:A-P2.50B-P1.00C-P3.50D- P6.00

Cost accounting is one of the branches of accounting. Under this branch, all types of costs incurred…

Answered: Using a physical measurement method,…

Using a physical measurement method, what amount of joint processing cost is allocated to product B? Using sales value at split-off, what amount of joint processing cost is allocated to Product B?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 64P: Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma,...

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Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product    Barrels    SP @ Split-Off Pt.         Cost to sell @ Split-off    Separable Cost   Final sales price A             750           P10.00                            P6.50                                   P2.00                    P13.50 B             1,000             8.00                           4.00                                   2.50                       10.00 C             1,400           11.00                           7.00                                   4.00                       15.50 D            2,000           15.00                           9.50                                   4.50                       19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50                B-P1.00                C-P3.50                D- P6.00 Using net…
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product    Barrels    SP @ Split-Off Pt.         Cost to sell @ Split-off    Separable Cost   Final sales price A             750           P10.00                            P6.50                                   P2.00                    P13.50 B             1,000             8.00                           4.00                                   2.50                       10.00 C             1,400           11.00                           7.00                                   4.00                       15.50 D            2,000           15.00                           9.50                                   4.50                       19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50                B-P1.00                C-P3.50                D- P6.00 Using the…
Scrubbing CompanyScrubbing Company produces four solvents from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to the nearest dollar.) Barrels Sales priceper barrelat split-off Disposalcostper barrelat split-off Furtherprocessingcosts Finalsalespriceper barrel C   750 $10.00 $6.50 $2.00 $13.50 D 1,000   8.00 4.00 2.50 10.00 E 1,400 11.00 7.00 4.00 15.50 G 2,000 15.00 9.50 4.50 19.50 If Scrubbing sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E, $3.50; G, $6.00.Refer to Scrubbing Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product D? Group of answer choices $1,748 $2,447 $1,311 $3,495
Kapangan Inc. manufactures products R, S and T from a joint process. Additional information follows: wwwwww u www R ТОTAL Units 8,000 4,000 14,000 P18,000 P120,000 ? P200,000 2,000 Joint Costs ? ? Sales value @ split-off P120,000 ? Further Processing costs P14,000 P10,000 P6,000 P30,000 Sales value of FG P140,000 Р60,000 P50,000 P250,000 Using the sale value at split-off, how much is the: joint cost allocated to S?
La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materials - P4, 000; Labor - P3, 0003; Overhead- P2, 000 Disposal cost Further per barrel at per barrel at processing price per split- off Sales price Final sales split- off costs barrel Barrels Wan 750 P10 P6.50 P2.00 P13.50 Tu 1, 000 8 4.00 2.50 10.00 Tri 4, 000 11 7.00 4.00 15.50 Por 2, 000 15 9.50 4.50 19.50 If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.00. (Round all answers to the nearest peso) Using a physical measurement method, what amount of joint processing cost is allocated to Product Por?
La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materials P4, 000; Labor - P3, 0003; Overhead- P2, 000 Disposal cost Further per barrel at per barrel at processing price per Sales price Final sales split- off split- off costs barrel Barrels Wan 750 P10 P6.50 P2.00 P13.50 Tu 1, 000 8. 4.00 2.50 10.00 Tri 4, 000 11 7.00 4.00 15.50 Por 2, 000 15 9.50 4.50 19.50 If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.00. (Round all answers to the nearest peso) Using net realizable value at split- off, what amount of joint processing cost is allocated to Product Tri?
ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
Tendler Co. produces two products, X and Y, using a joint process. The following data has been given to you: Joint cost Unit selling prices of completely processed products Units produced and processed beyond split-off Processing cost beyond split-off point Total $3,300 450 $3,700 Allocate the joint cost using the net-realizable value method: X: S XIN Y: S ? $10 300 $1,100 Y ? $40 150 $2,60
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: Units produced Allocated joint costs Sales value at split-off DF1 DF2 BP DF1 27,300 ? DF2 18,300 ? $ 563,250 $ 187,750 Joint Cost BP 15,300 ? $ 102,300 Total Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP? Note: Do not round intermediate calculations. 60,900 $ 560,300 $ 853,300
Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.) Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing cost Final sales price per barrel M1 750 P10.00 P6.50 P2.00 P13.50 M2 1,000 8.00 4.00 2.50 10.00 M3 1,400 11.00 7.00 4.00 15.50 M4 2,000 15.00 9.50 4.50 19.50 If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00. Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma, and Delta) from a common input. The joint costs for a typical quarter follow: The revenues from each product are as follows: Alpha, 100,000; Beta, 93,000; Gamma, 30,000; and Delta, 40,000. Management is considering processing Delta beyond the split-off point, which would increase the sales value of Delta to 75,000. However, to process Delta further means that the company must rent some special equipment that costs 15,400 per quarter. Additional materials and labor also needed will cost 8,500 per quarter. Required: 1. What is the operating profit earned by the four products for one quarter? 2. CONCEPTUAL CONNECTION Should the division process Delta further or sell it at split-off? What is the effect of the decision on quarterly operating profit?
Denver Fabricators manufactures products DF1 and DF2 from a joint process, which also yields a by-product, BP. The company accounts for the revenues from its by-product sales as other income. Additional information follows: DF1 DF2 BP Total Units produced 27,100 18,100 15,100 60,300 Allocated joint costs ? ? ? $ 560,100 Sales value at split-off $ 561,750 $ 187,250 $ 102,100 $ 851,100 Required: Assuming that joint product costs are allocated using the net realizable value at split-off approach, what joint costs are allocated to each of the joint products DF1 and DF2 and to the by-product, BP?