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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 to the production based on the; a) Number of Gallons b) sales value at split-off c) approximated net realizable values at split off d) Net realizable values at split off

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Req a:
Number of Gallons
Product Gallons % of Total Joint cost Allocation of JC
Jp1 4500 12.50% 558000 69750
JP2 18000 50.00% 558000 279000
Jp2 13500 37.50% 558000 209250
TOTAL 36000 100.00% 558000
Req b:
Sales value at splitt off:
Product Gallons SP per unit Sales value % of Total Joint cost Allocation of JC
Jp1 4500 14 63000 14.00% 558000 78120
JP2 18000 8 144000 32.00% 558000 178560
Jp2 13500 18 243000 54.00% 558000 301320
TOTAL 36000 450000 100.00% 558000
Req c:
Approx Net realizable value.
Product Gallons SP per unit Sales value Mark. Cost NRV approx % of Total Joint cost Allocation of JC
Jp1 4500 14 63000 11250 51750 13.58% 558000 75761.51
JP2 18000 8 144000 19800 124200 32.59% 558000 181827.6
Jp2 13500 18 243000 37800 205200 53.84% 558000 300410.9
TOTAL 36000 450000 381150 100.00% 558000
Req d:
NRV
Product Gallons SP per unit Sales value Mark. Cost Further Cost NRV approx % of Total Joint cost Allocation of JC
Jp1 4500 24 108000 11250 18000 78750 16.71% 558000 93266.48
JP2 18000 15 270000 19800 90000 160200 34.00% 558000 189730.7
Jp2 13500 22 297000 37800 27000 232200 49.28% 558000 275002.9
TOTAL 36000 450000 471150 100.00% 558000

ekkarill92 answered 2 years ago
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