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Allocating joint cost Keiffer Production manufactures three joint products in a single process. The following information...
Allocating joint cost
Keiffer Production manufactures three joint products in a single
process. The following information is available for August:
| Sales Value | ||||
|---|---|---|---|---|
| at Split-Off | Cost after | Final Selling | ||
| Product | Gallons | per Gallon | Split-Off | Price |
| JP-4539 | 11,700 | $14.00 | $4.00 | $24.00 |
| JP-4587 | 46,800 | 25.00 | 5.00 | 35.00 |
| JP-4591 | 35,100 | 18.00 | 2.00 | 22.00 |
Allocate the joint cost of $1,450,800 to the production based on the following:
a. number of gallons.
Note: Round proportions to the nearest tenth of a
percentage (i.e. round 13.45% to 13.5%) and dollar amounts to the
nearest whole dollar.
| JP-4539 | ? |
| JP-4587 | ? |
| JP-4591 | ? |
| Total | ? |
b. sales value at split-off.
Note: Round proportions to the nearest whole
percentage (i.e. round 13.45% to 13%) and dollar amounts to the
nearest whole dollar.
| JP-4539 | ? |
| JP-4587 | ? |
| JP-4591 | ? |
| Total | ? |
c. approximated net realizable values at split-off.
Note: Round proportions to the nearest whole
percentage (i.e. round 13.45% to 13%) and dollar amounts to the
nearest whole dollar.
| JP-4539 | ? |
| JP-4587 | ? |
| JP-4591 | ? |
| Total | ? |
Solutions
Expert Solution
| Req a. | ||||||||
| Allocation of JC on basis of units | ||||||||
| 4539 | 4587 | 4591 | Total | |||||
| Units | 11700 | 46800 | 35100 | 93600 | ||||
| % of Total | 12.50% | 50.00% | 37.50% | 100.00% | ||||
| Multiply: Joint cost | 1450800 | 1450800 | 1450800 | 1450800 | ||||
| Allocated JC | 181350 | 725400 | 544050 | 1450800 | ||||
| Req b. | ||||||||
| Allocation of JC on basis of Sales value | ||||||||
| 4539 | 4587 | 4591 | Total | |||||
| Units | 11700 | 46800 | 35100 | 93600 | ||||
| Multiply: Sales value per unit | 14 | 25 | 18 | |||||
| Sales value at splitt off | 163800 | 1170000 | 631800 | 1965600 | ||||
| % of Total | 8.33% | 59.52% | 32.14% | 100.00% | ||||
| Multiply: Joint cost | 1450800 | 1450800 | 1450800 | 1450800 | ||||
| Allocated JC | 120900 | 863571.4 | 466328.6 | 1450800 | ||||
| Req c. | ||||||||
| Allocation of JC on basis of Sales value | ||||||||
| 4539 | 4587 | 4591 | Total | |||||
| Units | 11700 | 46800 | 35100 | 93600 | ||||
| Multiply: Final Sales value per unit | 24 | 35 | 22 | |||||
| Sales value after further processing | 280800 | 1638000 | 772200 | 2691000 | ||||
| Less: Further processing cost | 46800 | 234000 | 70200 | 351000 | ||||
| Net realizable value | 234000 | 1404000 | 702000 | 2340000 | ||||
| % of Total | 10.00% | 60.00% | 30.00% | 100.00% | ||||
| Multiply: Joint cost | 1450800 | 1450800 | 1450800 | 1450800 | ||||
| Allocated JC | 145080 | 870480 | 435240 | 1450800 | ||||
ekkarill92 answered 3 months agoRelated Solutions
Keiffer production manufactures three joint products in a single process. The following are information is available...
Keiffer production manufactures three joint products in a single
process. The following are information is available for August
2013. Product : Jp1 - 4500gallon, JP-2 18000 gallon & Jp2 -
13500 gallons. Sales value at split off per gallon Jp1 - $14, $8
& $18 . Marketing cost regardless of when sold is $2.50,$1.1,
& $2.80 . Cost after split-off is $4, $5 & $2 . Final
selling price is $24, $15 & $22. Allocate the joint cost of
$558000...
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run...
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,900. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual Market
Price per Gallon
L-Ten
3,200
$0.40
$2.50
Triol
3,700
1.10
5.00
Pioze
2,300
1.60
6.30
Required:
1. Allocate the joint cost to L-Ten, Triol,...
Discuss the three common methods for allocating joint product cost.
Discuss the three common methods for allocating joint product
cost.
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Constant Gross Margin
Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,900. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual
Market
Price per Gallon
L-Ten
3,500
$0.50
$ 2.00
Triol
4,000
1.00
5.00
Pioze
2,500...
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Constant Gross Margin
Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,900. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual
Market
Price per Gallon
L-Ten
3,500
$0.50
$ 2.00
Triol
4,000
1.00
5.00
Pioze
2,500...
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Constant Gross Margin
Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,900. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual
Market
Price per Gallon
L-Ten
3,500
$0.50
$ 2.00
Triol
4,000
1.00
5.00
Pioze
2,500...
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Constant Gross Margin
Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,800. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual
Market
Price per Gallon
L-Ten
3,600
$0.50
$2.00
Triol
4,000
1.00
5.00
Pioze
2,400
1.50...
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Constant Gross Margin
Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,700. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual
Market
Price per Gallon
L-Ten
3,400
$0.50
$2.00
Triol
4,000
1.00
5.00
Pioze
2,600
1.50...
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol,...
Allocating Joint Costs Using the Net Realizable Value Method A
company manufactures three products, L-Ten, Triol, and Pioze, from
a joint process. Each production run costs $12,600. None of the
products can be sold at split-off, but must be processed further.
Information on one batch of the three products is as follows:
Product Gallons Further Processing Cost per Gallon Eventual Market
Price per Gallon L-Ten 3,500 $0.60 $2.60 Triol 4,000 0.90 5.10
Pioze 2,000 1.40 6.00 Required: 1. Allocate the...
JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may...
JOINT PRODUCTS/SPLIT-OFF
Blanchard Manufacturing Company manufactures four products from
a joint production process. Each product may be sold at split-off
or processed further.
Sales
Value
Sales Values and Costs if
Product Units
Produced at
Split
Off Processed
Further______
Sales
Value Added
Costs
1
50,000
$215,000
$235,000
$15,000
2
25,000
$60,000
$98,000
$22,000
3
19,500
$180,000
$207,000
$30,000
4
8,700
$22,000
$39,000
$8,000
Which product(s) should be processed...
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