Question
In: Accounting
Brevall Industries makes corn oil and corn meal from harvested corn in a joint process. The...
Brevall Industries makes corn oil and corn meal from harvested corn in a joint process. The corn oil can be further processed into margarine, and the corn meal can be further processed into corn muffin mix. The joint cost incurred to process the corn to the split-off point is $140,000. Information on the quantities, value, and further processing costs for the joint products appear below:
| Quantity | Sales Value At Split Off | Estimated Further Processing Cost | Sales Value After Processing | |
|---|---|---|---|---|
| Corn Oil | 800,000 lbs | $0.30/lb. | $0.15/lb | $0.60/ib |
| Corn Meal | 1,600,000 lbs | $0.10/lb | $0.46/lb | 0.55/lb |
Brevall allocates the joint cost to the products based on the relative sales value at split-off point. How much joint cost should be assigned to the corn oil?
Solutions
Expert Solution
| Quantity (a) | Sale value at split off (b) | Total Sales Value at split off (a*b) | |
| Corn Oil | 800000 | 0.3 | $ 240,000.00 |
| Corn Meal | 1600000 | 0.1 | $ 160,000.00 |
| Total Sales Value at split off (a*b) | Allocation of Joint cost | ||
| Corn Oil | $240,000 | $84,000 | |
| Corn Meal | $160,000 | $56,000 | |
| Total | $400,000 | $140,000 | |
| Joint cost = | $140,000 | ||
| Corn Oil | 240000*140000/400000 | $84,000 | |
| Corn Meal | 160000*140000/400000 | $56,000 | |
| The joint cost to be assigned to corn oil is $ 84,000 | |||
ekkarill92 answered 2 days agoRelated Solutions
Brevall Industries makes corn oil and corn meal from harvested corn in a joint process. Corn...
Brevall Industries makes corn oil and corn meal from harvested
corn in a joint process. Corn oil can be further processed into
margarine, and the corn meal can be further processed into corn
muffin mix. The joint cost incurred to process the corn to the
split-off point is $140,000. Information on the quantities, value,
and further processing costs for the joint product appears
below:
Quantity
Sales Value
At Split-off
Estimated Further
Processing Cost
Sales Value
After Processing
Corn Oil
800,000...
Bowen Company makes two products from a joint production process. Each product may be sold at...
Bowen Company makes two products from a joint production
process. Each product may be sold at the split-off point
or processed further. Information concerning these products
for last year appears below:
Product X Product Y
Allocated joint costs .................. $25,000 $17,000
Sales value after further processing ... $41,000 $47,000
Sales value at the split-off point ..... $29,000 $23,000
Additional processing costs ............ $19,000 $15,000
Assume Bowen Company makes all the correct sell or process
further decisions.
Calculate the net income...
2. In industries that process joint products, the costs of the raw materials inputs and the...
2. In industries that process joint products, the costs of the
raw materials inputs and the sales values of intermediate and final
products are often volatile. Change the data area of your worksheet
to match the following:
Chapter 12: Applying Excel
Data
Exhibit 12-7 Santa Maria Wool
Cooperative
Cost of wool
$210,000
Cost of separation process
$40,000
Sales value of intermediate products at
split-off point:
Undyed coarse wool
$127,000
Undyed fine wool
$163,000
Undyed superfine wool
$57,000
Costs of further...
2. In industries that process joint products, the costs of the raw materials inputs and the...
2.
In industries that process joint products, the costs of the raw
materials inputs and the sales values of intermediate and final
products are often volatile. Change the data area of your worksheet
to match the following:
hapter 07: Applying Excel
2
3
Data
4
Exhibit 7-6 Santa Maria Wool Cooperative
5
Cost of wool
$192,000
6
Cost of separation process
$40,000
7
Sales value of intermediate products at split-off point:
8
Undyed coarse wool
$110,000
9
Undyed fine wool...
2. In industries that process joint products, the costs of the raw materials inputs and the...
2. In industries that process joint products, the costs of the
raw materials inputs and the sales values of intermediate and final
products are often volatile. Change the data area of your worksheet
to match the following:
A
B
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Chapter 6: Applying Excel
Data
Exhibit 6-7 Santa Maria Wool
Cooperative
Cost of wool
$233,000
Cost of separation process
$40,000
Sales value of...
Ko-Ka-Ku Limited produces three main products from a joint manufacturing process. Fuel oil, gasoline, Kerosene and...
Ko-Ka-Ku Limited produces three main products from a joint
manufacturing process. Fuel oil, gasoline, Kerosene and Crude-I are
the products emerging from the joint manufacturing process. Crude-I
is aby-product and is sold at split-off, while the joint products
fuel oil, gasoline and kerosene need to be processed further.
Additional inventory and sales volume information (all in
litres) is as follows:
Products
Opening inventory
Sales units
Closing inventory
Fuel oil
1 000
10 000
2 000
Gasoline
2 000
12 000...
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come out of the joint process. Alternatively, any of the products
could continue on with additional processing and be sold as a more
complete product. The following information is available: Units
Immediate Sales Price Later Sales Price Unit Cost of Further
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Lido Products produces two products (A and B) from a joint
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000 and sold for $16...
Lido Products produces two products (A and B) from a joint process. The joint cost of...
Lido Products produces two products (A and B) from a joint
process. The joint cost of production is $80 000. Five thousand
units of Product A can be sold at split-off for $20 per unit or
processed further at an additional cost of $20 000 and sold for $25
per unit. Ten thousand units of Product B can be sold at split-off
for $15 per unit or processed further at an additional cost of $20
000 and sold for $16...
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