Question
In: Accounting
ohnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production...
ohnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston’s customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston’s customers requested the heat-resistant version of the products so that all production required additional separable processing. Total joint cost for the three products is $3,425,000.
| A101 | A204 | B216 | |||||||||
| Gallons sold | 202,000 | 188,000 | 135,000 | ||||||||
| Final sales price per gallon | $ | 14 | $ | 8 | $ | 9 | |||||
| Price at split-off | 11 | 4 | 5 | ||||||||
| Separable processing cost | $ | 607,000 | $ | 115,000 | $ | 550,000 | |||||
Required:
1. Calculate the unit product cost and total gross margin for each of the three product lines using the following methods: (a) physical measure method, (b) sales value at split-off method, (c) the net realizable value method, and (d) the constant gross margin percentage method. (Round intermediate calculations and cost per unit answers to 4 decimal places. Round your final answers to whole dollar amounts. Negative amounts should be indicated with a minus sign.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
7-45 Johnson adhesives company makes three widely used industrial adhesives: A101, A 204 and B216 sales...
7-45
Johnson adhesives company makes three widely used industrial
adhesives: A101, A 204 and B216 sales and production information
for each of the three adhesives are shown in the following table.
Most of johnsons customers ask for a special blend of the three
products which improves heat-resistance. The aditional separable
processing requires additional time and materials, and the price is
increased accordingly as shown in the table. Assume that johnson
produces only for specific customer orders, so there is no...
KNM Company is specialty manufacturer of a wide variety of industrial chemicals and adhesives. Much of...
KNM Company is specialty manufacturer of a wide variety of
industrial chemicals and adhesives. Much of the raw material is
purchased in bulk from other chemical companies. One of the
chemicals, X2, is prepared in one of KNM’s own plants, the X2 unit.
X2 is shipped to other KNM plants at a given internal price.
The KNM plant in KSA requires 20,000 barrels of X2 per month
and can purchase from outside the firm for $300 per barrel. KNM’s
X2...
KNM Company is specialty manufacturer of a wide variety of industrial chemicals and adhesives. Much of...
KNM Company is specialty manufacturer of a wide variety of
industrial chemicals and adhesives. Much of the raw material is
purchased in bulk from other chemical companies. One of the
chemicals, X2, is prepared in one of KNM’s own plants, the X2 unit.
X2 is shipped to other KNM plants at a given internal price.
The KNM plant in KSA requires 20,000 barrels of X2 per month
and can purchase from outside the firm for $300 per barrel. KNM’s
X2...
KNM Company is specialty manufacturer of a wide variety of industrial chemicals and adhesives. Much of...
KNM Company is specialty manufacturer of a wide variety of
industrial chemicals and adhesives. Much of the raw material is
purchased in bulk from other chemical companies. One of the
chemicals, X2, is prepared in one of KNM’s own plants, the X2 unit.
X2 is shipped to other KNM plants at a given internal
price.
The KNM plant in KSA requires 20,000 barrels of X2 per month and
can purchase from outside the firm for $300 per barrel. KNM’s X2...
- What materials are ( or can be ) used for adhesives? ( general families) -...
- What materials are ( or can be ) used for adhesives?
( general families)
- What kind of "triggers" are used to cause the "curing" of some
polymer adhesives?
- What geometries are "best" for adhesively bonded joints ? What
are their names, what do they look like, Why are they "best"?
- When should you choose a material for a new product?
- What criteria do you need to consider in material
selection?
- How often should you...
Ethanol (C2H5OH) is a very important chemical.in addition to being widely used as an industrial solvent,a...
Ethanol (C2H5OH) is a very important chemical.in
addition to being widely used as an industrial solvent,a gasoline
additive,and an alternative fuel,it is well known as the alcoholic
beverages.A common name for ethanol is grain alcohol because it is
formed by the fermentation of glucose (C6H12O6) and other sugars in
grains such as corn,wheat and barley:
C6H12O6---'C2H5OH + CO2
The previous reaction has been carried out for many centuries and
is one of the oldest manufacturing processes.In a more recent
development,ethanol...
Describe the percentage of sales method and briefly explain why it is used widely.
Describe the percentage of sales method and briefly explain why it
is used widely.
The O.T. Company makes 35,000 motors to be used in the production of its sewing machines....
The O.T. Company makes 35,000 motors to be used in the
production of its sewing machines. The cost per motor at this level
of activity is:
Direct materials
$4.50
Direct labor
$4.60
Variable manufacturing overhead
$3.75
Fixed manufacturing overhead
$3.45
An outside supplier has offered to supply all the motors the
company needs for $15 each. If O.T. Company decided not to make the
motors, there would be no other use for the production facilities
and none of the fixed...
Black Scholes and Binomial Trees are widely used by industry players. However, what makes these models...
Black Scholes and Binomial Trees are widely used by industry
players. However, what makes these models far from perfect?
2-3 paragraphs please
Black Scholes and Binomial Trees are widely used by industry players. However, what makes these models...
Black Scholes and Binomial Trees are widely used by industry
players. However, what makes these models far from perfect?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- QUESTION 2 (20) Below is the title and abstract of an article which was published in...
- The steam used during the production of alumina in the Bayer process serves as both a...
- you just received an inheritance and are trying to decide between 3 options. your required return...
- Suppose you work in public relations for a company that is developing an attractive, affordable, low-emissions...
- Preston Company manufactures car seats in its San Antonio plant. Each car seat passes through the...
- TOPIC: EMPLOYEE HEALTH AND SAFETY IN THE ORGANIZATION Organization officials have a legal and moral responsibility...
- Broussard Skateboard's sales are expected to increase by 15% from $8.8 million in 2016 to $10.12...
ADVERTISEMENT