Webster Company produces 36,000 units of product A, 28,000 units of product B,and 11,000 units of product C from the same manufacturing process at a cost of$350,000. A and B are joint products, and C is regarded as a by-product. The unitselling prices of the products are $20 for A, $10 for B, and $1 for C. None of theproducts require separable processing. Of the units produced, Webster Companysells 29,000 units of A, 27,000 units of B, and 11,000 units of C. The firm uses thenet realizable value method to allocate joint costs and by-product costs. Assumeno beginning inventory. (Do not round intermediate calculations.)1) What is the value of the ending inventory of product A?2)What is the value of the ending inventory of product B?

Net realizable value method to allocate joint costs and by product costs: Under the net realizable…

Webster Company produces 36,000 units and 11,000 units of product C from the san $350,000. A and B are joint products, and selling prices of the products are $20 for A products require separable processing. Of sells 29,000 units of A, 27,000 units of B, ar het realizable value method to allocate joir no beginning inventory. (Do not round inte

Webster Company produces 36,000 units and 11,000 units of product C from the san $350,000. A and B are joint products, and selling prices of the products are $20 for A products require separable processing. Of sells 29,000 units of A, 27,000 units of B, ar het realizable value method to allocate joir no beginning inventory. (Do not round inte

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending inventory units of 24,000 60% complete. Conversion costs of beginning inventory of P9,800; current period conversion costs of P204,125. The unit conversion cost using weighted average method is:
Forest Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost A 1,000 B 800 с 600 D 200 E 600 $ 10 15 3 7 14 Unit Replacement Unit Selling Cost Price $ 16 18 8 6 13 $ 12 11 2 4 12 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Hi, Please help with attached questions, thanks much.
Search or type a command lanagement Accounting for KUBIM) 15. The following information pertains to Stark Corporation: Beginning inventory Ending inventory Direct labor per unit Direct materials per unit Variable overhead per unit 4 Fixed overhead per unit Variable selling costs per unit Fixed selling costs per unit What is the value of ending inventory using the absorption costing method? * (1 Point) 0 units 5,000 units $20 16 10 12 16 $200,000 $250,000 $310,000 $390,000 16. Martin Company uses 625 units of a part each year. The cost of placing one order is $8; the cost of carrying one unit in inventory for a year is $4. Martin has decided to begin ordering 40 units at a time. What is the average annual carrying cost of Martin's new policy? * (1 Point) $160 $90 $60 $4 $80 17. Aerotoy Company makes toy airplanes. One plane is an excellent replica of a 737; it sells for $5. Vacation Airlines wants to purchase 12,000 planes at $1.75 each to give to children flying
Accounting for Joint Products and By-Products 613 52. What is the sales value of Product D at split off point? P45,000 b. a. P30,000 P67,500 d. P22,500 c. 53. What is the cost of Product E sold for the vear ended July 31, 2018? P147,000 b. а. P 99,000 P144,000 d. P135,000 с. 54. What is the cost of the inventory of Product D on July 31, 2018? P27,000 b. а. P18,000 P22,500 d. с. P54,000 55. What is the cost of the inventory of Product F on July 31, 2018? P33,500 P65,250 P42,750 P90,000 a. b. с. d. Question 56 and 57 are based on the following data: JGG Company produces three products: Product A, B and C from the same materials. Joint costs for this production run are P32,500. Data for the three products are: Sales price per kilo at split-off point Disposal cost per kilo at split-off point Product Kilos 800 P6.50 P3.00 A 8.25 1,100 1,500 4.20 4.00 8.00
The following items were included in the inventory list of ABC Corp:Materials unused in the production, P10,000Materials used in the production, P50,000Conversion costs, P50,000Unsold goods in the warehouse, 67,000Which of the following conclusion is true about ABC Corp? a. The entity is a trading company b. ABC sells services to its clients c. The unsold goods in the warehouse are finished goods inventory d. The business purchases materials and sell them at a higher price
None
Ames Trading Company has the following products in its ending inventory Cost per Unit Product Mountain bikes. Skateboards Gliders Inventory Items Quantity 12 22 12 Mountain bikes Skateboards Gliders $ 580 330 960 Compute lower of cost or market for inventory applied separately to each product. Units Market per Unit $ 510 370 910 Per Unit Cost Market Cost Total Market LCM applied to each product
Blossom Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows. Net Realizable Cost Value Small $63,300 $59,600 Medium 289,600 261,000 Large 151,300 172,500 Determine the value of the company's inventory under the lower-of-cost-or-net realizable value approach. Total inventory value $
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? BUDE Cost $ 180 220 160 140 90 C Per Unit Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
inv 3Company A sells only one product X. At the inventory on 31/12/20X5 it was found that there were 500 pieces of X in the warehouse at a cost of EUR 30 per piece. The net realisable market value of X was estimated at EUR 28 per piece but X also has a written non-cancellable agreement to sell 300 pieces of X to company B at EUR 31 per piece. At what value will X's stock be valued?In FY20X6 all the beginning inventory was sold. In particular, the 200 pieces that were valued to KAP were sold at € 35 per piece.Carry out the journal entries resulting from the above events up to the calculation of gross profit.