Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 17, Problem 36C
1.
To determine
Draw a diagram that portrays the joint production process of Company V.
2.
To determine
Allocate the joint production costs of company V for the month of May under the following methods:
- a. The physical-units method.
- b. The relative-sales-value method.
- c. The net-realizable-value method.
3.
To determine
Describe whether Kryptite should be processed further into Omega and if so state the reason.
4.
To determine
Describe whether the joint cost allocation from requirement (2) is used or not in requirement (3) and explain the reason behind it.
5.
To determine
Prepare an excel sheet for the given detail in requirement (2) and (3), assume that the joint cost is $245,000, and the sales price of Omega is $125 per pound.
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GETSNYA manufactures two industrial products in a joint process. In January, 10,000 gallons of input costing P120,000 were processed at a cost of P300,000. The joint process resulted in 8,000 pounds of Product One and 2,000 pounds of Product Two. Product One sells at P50 per pound and Product Two sells for P100 per pound. Management generally processes each of these chemicals further to produce more refined chemical products. Product One is processed separately at a cost of P10 per pound, the resulting product sells for P70 per pound. Product Two is processed separately at a cost of P30 per pound, the resulting product sells for P190 per pound.Assuming that management is considering an opportunity to process Product Two into a new product. The separable processing will cost P80 per pound. Packaging costs for the new product is projected to be P12 per pound, and anticipated sales price is P260 per pound. Should Product Two be processed further into a new product?
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Chapter 17 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Should actual or budgeted service department costs...Ch. 17 - Prob. 4RQCh. 17 - Why does dual cost allocation improve the...Ch. 17 - What potential behavioral problem can result when...Ch. 17 - Should actual or budgeted service department costs...Ch. 17 - Explain the difference between two-stage...Ch. 17 - Define the following terms: joint production...Ch. 17 - Prob. 10RQ
Ch. 17 - Describe the relative-sales-value method of joint...Ch. 17 - Define the term net realizable value, and explain...Ch. 17 - Are joint cost allocations useful? If they are,...Ch. 17 - For what purpose should the managerial accountant...Ch. 17 - Prob. 15ECh. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Tuscaloosa National Bank has two service...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Breakfasttime Cereal Company manufactures two...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Refer to the data given in Exercise 1720....Ch. 17 - Prob. 23ECh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Celestial Artistry Company is developing...Ch. 17 - Snake River Sawmill manufactures two lumber...Ch. 17 - Travelcraft Company manufactures a complete line...Ch. 17 - Biondi Industries is a manufacturer of chemicals...Ch. 17 - Berger Company manufactures products Delta, Kappa,...Ch. 17 - Prob. 31PCh. 17 - Lafayette Company manufactures two products out of...Ch. 17 - Refer to the data given in Problem 1726 for...Ch. 17 - Prob. 34PCh. 17 - Top Quality Fruit Company, based on Oahu, grows,...Ch. 17 - Prob. 36C
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