Homework Answers
| 1) | Calculate how the Joint Costs of $ 1,22,000 would be allocated between Methanol & Turpentine Under Following Methods | ||||||||
| Physical Measure (gallons) | |||||||||
| Particulars | Methanol | Turpentine | Total | ||||||
| Physical measure of Total Production | 3125 | 9375 | 12500 | ||||||
| Weight | 0.25 | 0.75 | 1.00 | ||||||
| Joint Cost Allocated | $30,500 | $91,500 | $122,000 | ||||||
| 2) | Net realizable Value | ||||||||
| Particulars | Methanol | Turpentine | Total | ||||||
| Final Sales value of Total Production | $87,500 | $187,500 | $275,000 | ||||||
| [3,125 x $28] | [9,375 x $20] | ||||||||
| Deduct Separable Costs | ($12,500) | ($28,125) | ($40,625) | ||||||
| [3,125 x $4] | [9,375 x $3] | ||||||||
| NRV at Splitoff Point | $75,000 | $159,375 | $234,375 | ||||||
| Weight | 0.32 | 0.68 | 1.00 | ||||||
| Joint Cost Allocated | $39,040 | $82,960 | $122,000 | ||||||
| Prepare product line income statements per batch for requirement 1 & 2 | |||||||||
| 3(a) | Physical Measure (gallons) | ||||||||
| Particulars | Methanol | Turpentine | Total | ||||||
| Sales value of Total Production | $87,500 | $187,500 | $275,000 | ||||||
| [3,125 x $28] | [9,375 x $20] | ||||||||
| Deduct Joint Costs | ($30,500) | ($91,500) | ($122,000) | ||||||
| [$122,000 x 0.25] | [$122,000 x 0.75] | ||||||||
| Deduct Separable Costs | ($12,500) | ($28,125) | ($40,625) | ||||||
| [3,125 x $4] | [9,375 x $3] | ||||||||
| Gross Income | $44,500 | $67,875 | $112,375 | ||||||
| 3(b) | Net realizable Value | ||||||||
| Particulars | Methanol | Turpentine | Total | ||||||
| Sales value of Total Production | $87,500 | $187,500 | $275,000 | ||||||
| [3,125 x $28] | [9,375 x $20] | ||||||||
| Deduct Joint Costs | ($39,040) | ($82,960) | ($122,000) | ||||||
| [$122,000 x 0.32] | [$122,000 x 0.68] | ||||||||
| Deduct Separable Costs | ($12,500) | ($28,125) | ($40,625) | ||||||
| [3,125 x $4] | [9,375 x $3] | ||||||||
| Gross Income | $35,960 | $76,415 | $112,375 | ||||||
| 4) | Net realizable Value | ||||||||
| Particulars | Alcoholic beverage | Turpentine | Total | ||||||
| Final Sales value of Total Production | $187,500 | $187,500 | $375,000 | ||||||
| [3,125 x $60] | [9,375 x $20] | ||||||||
| Deduct Separable Costs | ($43,750) | ($28,125) | ($71,875) | ||||||
| [3,125 x $14] | [9,375 x $3] | ||||||||
| Deduct Excise Taxes @ 20% on Selling Price | ($37,500) | - | ($37,500) | ||||||
| [1,87,500 x 20%] | |||||||||
| NRV at Splitoff Point | $106,250 | $159,375 | $265,625 | ||||||
| Weight | 0.40 | 0.60 | 1.00 | ||||||
| Joint Cost Allocated | $48,800 | $73,200 | $122,000 | ||||||
| Prepare product line income statements per batch if additional process | |||||||||
| Net realizable Value | |||||||||
| Particulars | Alcoholic beverage | Alcoholic beverage | Total | ||||||
| Final Sales value of Total Production | $187,500 | $187,500 | $375,000 | ||||||
| [3,125 x $60] | [9,375 x $20] | ||||||||
| Deduct Joint Costs | ($48,800) | ($73,200) | ($122,000) | ||||||
| [$122,000 x 0.40] | [$122,000 x 0.60] | ||||||||
| Deduct Separable Costs | ($43,750) | ($28,125) | ($71,875) | ||||||
| [3,125 x $14] | [9,375 x $3] | ||||||||
| Deduct Excise Taxes @ 20% on Selling Price | ($37,500) | - | ($37,500) | ||||||
| [1,87,500 x 20%] | |||||||||
| Gross Income | $57,450 |
Know the answer?
Add Answer to:
|
Question Help The Rouse Spirits Company produces two products-methanol (wood alcohol) and turpentine by a joint process. Joint costs amount to $122.000 per batch of output. Each batch totals 12.500 galon 25 methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol. S4 per gallon, and lurperline, 3 pergation Methanol for 28 pergation Turpentine sells for $20 per gallon. Read the requirements point (Hound the weights to five Requirement 1....
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 4. The company has discovered an additional process by...
The Tempura Spirits Company produces two products methanol (wood alcohol) and turpentine-by a joint process. Joint costs amount to $124,000 per batch of output. Each batch fotais 0,500 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, S4 per gallon, and turpentine, $2 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon Read the requirements Requirement 2. If joint costs are allocated...
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...
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...
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...
Rouse Company is one of the world's leading com refiners. It produces two joint products-com synup and com starch-using a common production process. In July 2017, Rouse reported the folowing production and selling-price information: (Click the icon to view the information.) Requirement Allocate the $325,000 joint costs using the NRV method. (Round the weights to two decimal places) Com syrup Com starch Total Final sales value of total production Deduct separable costs NRV at splitoff point Weighting Joint costs alocated...
Company is one of the world's leading corn refiners. It produces two joint products, corn syrup and corn starch, using a common production process. In July 2018, Stenback reported the following production and selling price information: (Click the icon to view the production and selling price information.) Required Allocate the $328,000 joint costs using the NRV method. (Round the weightings to two decimal places.) Corn Syrup Corn Starch Total Final sales value of total production Deduct separable costs NRV at...
Innerva Soy Products (MSP) buys soybeans and processes them
into other soy products. Each ton of soybeans that MSP purchases
for $340 can be converted for an additional $220 into 500 lbs of
soy meal and 80 gallons of soy oil. A pound of soy meal can be sold
at splitoff for $1.24 and soy oil can be sold in bulk for $4 per
gallon.
MSP can process the 500 pounds of soy meal into 550 pounds of
soy cookies...