Problem Solving 1. Harry Corporation manufactures Products J, K, L and M from a joint process. Additional information is as follows: Product J K L M Units Produced 6,000 5,000 4,000 3,000 18,000 Market Value at Split - Off P 80,000 60,000 40,000 20,000 P 200,000 If Processed Further Additional Costs P 7,500 6,000 4,000 2,500 P 20,000 Market Value P 90,000 70,000 50,000 30,000 P 240,000 Assuming that total joint costs of P 160,000 were allocated using the market value at spilt-off approach, what joint cost were allocated to each product (J, K, L and M)?

Problem Solving 1. Harry Corporation manufactures Products J, K, L and M from a joint process. Additional information is as follows: Product J K L M Units Produced 6,000 5,000 4,000 3,000 18,000 Market Value at Split - Off P 80,000 60,000 40,000 20,000 P 200,000 If Processed Further Additional Costs P 7,500 6,000 4,000 2,500 P 20,000 Market Value P 90,000 70,000 50,000 30,000 P 240,000 Assuming that total joint costs of P 160,000 were allocated using the market value at spilt-off approach, what joint cost were allocated to each product (J, K, L and M)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Current Attempt in Progress Crane Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM) basis in valuing inventories. Product Cost Net realizable value A $119000 $127000 B 78000 C 151000 76000 O $346000 O $348000 O $369000 O $367000. 164000 D If Crane applies the LCNRV basis, the value of the inventory reported on the balance sheet would be
UESTION 1Trinity product Limited makes and sells three types of electronic security systems for which the following information is available Standard cost and selling price per unitDay Scan Night scanOmni scanGH¢GH¢GH¢Material70110155Manufacturing labour405570Installation labour243244Variable overheads162028Selling price250320460 Fixed cost for the period are GH¢450,000 and installation labour, which is highly skilled is available for 25,000 hours only in a period and is paid GH¢8 per hour. Both manufacturing and installation labour are variable cost. The maximum demand for the period is: Day scan 2,000 units; Night scan 3,000 units; Omni scan 1,800 units.Requireda) Calculate the shortfall (if any) in hours of installation labour.b) Determine the best production plan assuming the company wishes to maximize profit. c) calculate the maximum profit that could be achieved from the plan in part (b) aboved) Having carried out an investigation of the availability of installation labour, the…
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A $43,529.50 $80,697.00 Machine B Machine C $64,675.95 310,925.00 268,990.00 431,173.00 Estimated average income Average investment Oa. Machine B Ob. Machine A Oc. Machine C Od. Machines B and C have the same preferred average rate of return.
Q3: ABC steel plant industry plans to manufacture a product. The product needs a special component. The industry has reviewed that the special component can be produced in the plant or bought in. An investment is required to start the production of the component for which two mutually exclusive projects A and B representing different production processes are available. The alternative option is to buy in from another company representing project C. The details of projects A and B are given in Table 3: (i) Using the information from table 3 and Discount Cash Flow criteria, calculate Pay Back Period (PBP), Account Rate of Return (ARR), Net Present Value (NPV) and Internal Rate Return (IRR) for project A & Project B if the industry plans to sale the unit cost of RO 350. (ii) Using the annual cost data from table 3, determine which project incurs less cost if the industry considers producing 7,500 units per year. (iii) Using the table 3, determine the Break-Even quantity and margin of…
PQR enterprise wants to buy a machine. It receives offers for two models M and N. Data related to models are given below:
ngageNOWv2 | Online teachin X + om/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... € Compute conversion costs given the following data: direct materials, $363,600; direct labor, $192,400; factory overhead, $204,500 and selling expenses, $35,600. Oa. $396,900 Ob. $568.100 Oc. $168,900 Od. $760,500 8 5/2
i need Part B solution now i have already part A solution i attacheed here also a). Total Manufacturing cost = Direct material + Direct labor + Manufacturing overhead Total manufacturing cost = 9,700 + 5,100 + 8,400 = $23,200 b). Cost of Goods manufactured = Total manufacturing cost + Beginning WIP - Ending WIP 17,100 = 23,200 + 1,100 - Ending WIP 17,100 = 24,300 - Ending WIP Ending WIP = 6,100 c). Goods available for sale = Cost of goods manufactured + Beginning Finished Goods 22,100 = 17,100 + Beginning Finished goods inventory Beginning Finished Goods Inventory = 5,000 d). Cost of Goods sold = Goods available for sale - Ending Finished Goods Inventory Cost of Goods sold = 22,100 - 3,500 = $18,600 e). Gross Profit = Net Sales - Cost of goods sold = (Sales revenue - Sales discounts) - Cost of goods sold = (25,000 - 2,600) - 18,600 = 3,800 f). Net Income = Gross Profit - Operating Expense = 3,800 - 2,800 = 1,000 arrow_forward Step 3 g). Direct Material Used = Total…
https://education.aima.in/processOnlineExam.action?onlineAssignmentDefinition.id 1444118538- Google Chrome A education.aima.in/processOnlineExam.action?onlineAssignmentDefinition.id=1444118538 A company produces X, Y and Z from a raw material M. For every 100 tonnes ofM put into production it obtains 50 tons of product X, 30 tons of Y and 15 tons of Z, while 5 tons goes as waste. The selling price of X, Y and z is Rs. 40. Rs, 60 and Rs. 80 per ton. The cost of raw material M is Rs. 20 and variable processing costs are Rs. 10. Variable marketing costs are budgeted to be at the rate of 10 percent of sales value. Budgeted fixed overheads per annum are: Manufacturing - Rs. 40,000, Marketing - Rs. 30,000, and Administration - Rs. 20,000. The company intends to process 10,000 tonnes of material M in the coming year. or Question 21:- Fixed Cost is Rs. a) O 75000 b) O 60000 E c) 90000 d) O 55000 TH NO Question 22:- Contribution is Rs. a) O 12 per unit b) . 15 per unit F c)O 16 per unit d) O 18…
A company makes a product R. which requires one each of two first-level components, 5 and T. Routing data for these items are as follows tem Operation No. Dept Work Center Run Time Per unit Setup Time Average Lot size No. No. Std hours) Std hours) R 10 12 0.80 1.50 20 10 12 16 0.50 0.60 40 20 14 1.20 2.00 40 10 16 1.00 0.40 40 20 14 0.30 1.20 40 (a) The Bill of Capacity for product R (in standard hours) at work center 12 is closest to:
Joy Corporation sells multiple products. One of the product lines showed the following results: A. P 118,100B. P 118,200C. P 128,100D. P 128,200
The objective manufactured. A manufacturer wishes to produce two commodities x and y. The number of units of material, labor and equipment needed to produce one unit of each commodity is Shown below together with the available number of units of each of the items. available no. of units 480 y material 4 labor 4 240 equipment 4 200 profit/unit P120 P100 Find the number of units to produce in order to maximize the profit. 429
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Line Item Description Machine A Machine B Machine C Estimated average income $47,060.44 $72,961.50 $73,785.60 Average investment 336,146.00 243,205.00 491,904.00 a. Machine C b. Machine A c. Machines B and C have the same preferred average rate of return. d. Machine B