Question

Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs

REQUIREMENTS
A. Determine the amount of joint cost allocated to each product if the NRV method is used
B. determine the amount of joint costs allocated to each product if the physical output method is used
C. There is a new process that could convert Product A into Super A. Super A sells for $40 per unit. The additional costs of Super A are $170000. Should Calamata start producing Super A- why or why not?

PLEASE SHOW UR WORK

0 0
Add a comment Improve this question Transcribed image text
Answer #1

B A 450,000 Apportionment of Jeunt Cout using NRV Method Particulars Sale Value of final output 250,000 3,00,000 (25x10,000)B A 450,000 Apportionment of Jeunt Cout using NRV Method Particulars Sale Value of final output 250,000 3,00,000 (25x10,000)

Add a comment
Know the answer?
Add Answer to:
REQUIREMENTS A. Determine the amount of joint cost allocated to each product if the NRV method...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • all parts please Kalamata Corporation processes a single material into three separate products A B, and...

    all parts please Kalamata Corporation processes a single material into three separate products A B, and C. During September, the joint costs of processing were 530 Production and sales value information for the month were as follows: Product A B Units Produced 10,000 15,000 12,500 Final Sales Value per Unit $25 30 24 Separable Costs $125,000 250,000 125,000 C Required: 2. Determine the amount of joint cost allocated to each product if the NRV method is used. . Determine the...

  • Purple Paper Company processes wood pulp into two products. During July the joint costs of processing...

    Purple Paper Company processes wood pulp into two products. During July the joint costs of processing were $50,000. Production and sales value information for the month were as follows:                                                                  Sales Value at Product             Kilograms Produced       splitoff Point Separable Costs Paper                              125,000                         $63,000                       $221,000 Cardboard                      96,000                           46,000                         262,000 Paper sells for $2.71 a kilogram and cardboard sells for $3.10 a kilogram. There were no beginning or ending inventories for July QUESTION: Determine the amounts to be allocated to paper using...

  • UU PUNIS) Red Sauce Canning Company processes tomatoes into two joint products: Catsup and Tomato Juice....

    UU PUNIS) Red Sauce Canning Company processes tomatoes into two joint products: Catsup and Tomato Juice. During the summer of 2018, the joint costs of processing the tomatoes were $4,200,000. There was no beginning or ending inventories for the summer. Production and sales information for the summer is as follows: Product Catsup Juice Production Units at Splitoff Point 100,000 cases 150,000 cases Separable Costs $300,000 $750,000 Final Sales Units 50,000 cases 100,000 cases Final Selling Price S28 per case 25...

  • b. Now allocate the joint cost to the cookies and the Soyola using the NRV method....

    b. Now allocate the joint cost to the cookies and the Soyola using the NRV method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Cookies Soyola Total Final sales value of total production Deduct separable costs Net realizable value Weighting Joint costs allocated Requirement 2. Should ISP have processed each of the products further? What effect does the allocation method have on this decision? Begin by calculating the profit or loss that would occur...

  • The joint cost of processing all the products were $725,000. The separable costs are not traceable....

    The joint cost of processing all the products were $725,000. The separable costs are not traceable. There is no beginning or ending inventory. Product Units 250000 kg 300000 kg 300000 Litres Sales Value at split off point $10/ kg $4.5 per kg $7.5 per Litres Determine the amount allocated to each product if the sales value at split off method is used and compute the cost per appropriate unit for each product.

  • Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint c...

    Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint costs b) 1) compute overall sales value; 2) compute total production cost for each product; 3) compute allocated joint costs c) 1) COMPUTE OVERALL NRV; 2) compute total production costs for each product 3) compute allocated joint costs d) none of these

  • BELOW ARE SOME NOTES THAT MAY HELP FOR THIS COSTING QUESTION Problem 7-48 Joint Products; By-Products...

    BELOW ARE SOME NOTES THAT MAY HELP FOR THIS COSTING QUESTION Problem 7-48 Joint Products; By-Products (Appendix) [LO 7-6, 7-7] The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,300...

  • The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint...

    The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $0.90 per litre; turpentine, $0.60 per litre. Methanol sells for $6.30 per litre; turpentine sells for $4.20 per litre. Required Methanol Turpentine Total Physical measure of total production 10,000 30,000...

  • Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint...

    Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were X - $10,000; Y - $20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. What amount of joint costs will be allocated to Product X using the physical units method? a. $25,000 b....

  • The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint...

    The Stenback Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $0.90 per litre; turpentine, $0.60 per litre. Methanol sells for $6.30 per litre; turpentine sells for $4.20 per litre Required Requirement 1. How much joint costs per batch should be...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT