Question
In: Accounting
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a...
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $189,000. Additional information follows.
| If Processed Further | ||||||||||
| Product | Units Produced | Sales Value at Split-Off | Sales Values | Additional Costs | ||||||
| KA | 84,000 | $ | 240,000 | $ | 330,000 | $ | 54,000 | |||
| KB | 60,000 | 210,000 | 270,000 | 42,000 | ||||||
| KC | 24,000 | 150,000 | 240,000 | 30,000 | ||||||
After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $171,000 for every 24,000 units produced.
Required:
a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively?
b. Which, if either, product would you recommend Kyle Company sell at split-off?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a...
The following questions relate to Kyle Company, which
manufactures products KA, KB, and KC from a joint process. Joint
product costs were $196,000. Additional information follows:
If Processed Further
Product
Units Produced
Sales Value at Split-Off
Sales Values
Additional Costs
KA
63,000
$
310,000
$
400,000
$
61,000
KB
67,000
280,000
340,000
49,000
KC
31,000
220,000
310,000
37,000
After the publication of recent scientific test results, the
government has banned the sale of product KC. IF KC is produced, it...
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[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha...
[The following information applies to the questions
displayed below.]
Cane Company manufactures two products called Alpha and Beta
that sell for $205 and $164, respectively. Each product uses only
one type of raw material that costs $8 per pound. The company has
the capacity to annually produce 127,000 units of each product. Its
average cost per unit for each product at this level of activity
are given below:
Alpha
Beta
Direct materials
$
40
$
24
Direct labor
37
30...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products...
Required information [The following information applies to the
questions displayed below.] Cane Company manufactures two products
called Alpha and Beta that sell for $130 and $90, respectively.
Each product uses only one type of raw material that costs $5 per
pound. The company has the capacity to annually produce 102,000
units of each product. Its average cost per unit for each product
at this level of activity are given below: Alpha Beta Direct
materials $ 25 $ 10 Direct labor...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products...
Required information [The following information applies to the
questions displayed below.] Cane Company manufactures two products
called Alpha and Beta that sell for $130 and $90, respectively.
Each product uses only one type of raw material that costs $5 per
pound. The company has the capacity to annually produce 102,000
units of each product. Its average cost per unit for each product
at this level of activity are given below: Alpha Beta Direct
materials $ 25 $ 10 Direct labor...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products...
Required information [The following information applies to the
questions displayed below.] Cane Company manufactures two products
called Alpha and Beta that sell for $130 and $90, respectively.
Each product uses only one type of raw material that costs $5 per
pound. The company has the capacity to annually produce 102,000
units of each product. Its average cost per unit for each product
at this level of activity are given below: Alpha Beta Direct
materials $ 25 $ 10 Direct labor...
The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha...
The following information applies to the questions displayed
below.]
Cane Company manufactures two products called Alpha and Beta
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the capacity to annually produce 110,000 units of each product. Its
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Beta
Direct materials
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$
12
Direct labor
23
26
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