(By-products and cost allocation) Classic Productions produced two movies (joint products) in 1997 in its Seattle facilities....

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(By-products and cost allocation) Classic Productions produced two movies (joint products) in 1997 in its Seattle facilities. The company also generated revenue from admissions paid by fans touring the movie production sets. Classic regards the net income from tours as a by-product of movie production. The firm ac¬ counts for this income as a reduction in the joint cost before that joint cost is allocated to movies. The following information pertains to the two movies: image text in transcribed

The joint cost incurred to produce the two movies was $8,000,000. Joint cost is allocated based on net realizable value.

a. How much of the joint cost is allocated to each movie?

b. How much profit was generated by each movie?LO1

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Question Posted: Jul 01, 2024 02:15 AM

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(By-products and cost allocation) Classic Productions produced two movies (joint products) in 1997 in its Seattle facilities....

Question:

PRODUCTS Movie 1 Movie 2 Tours TOTAL RECEIPTS $ 4,000,000 27,000,000 300,000 SEPARATE COSTS $ 2,400,000 18,600,000 140,000

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Cost Accounting Traditions And Innovations

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