6. Prosea Company manufactures two chemicals, tudine and lodine, in a joint process. The process yields 4,000
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6. Prosea Company manufactures two chemicals, tudine and lodine, in a joint process. The process yields 4,000 pounds of tudine that could be sold for $150,000 at splitoff, and 2,000 pounds of lodine that could be sold for $600,000 at splitoff. Tudine is processed further at a cost of $30,000 into an adhesive that sells for $200,000, and lodine is processed further at a cost of
$100,000 into a powder that sells for $740,000.
Calculate the amount of the cost allocation base to be used to allocate the joint costs for each joint product, first using sales value at splitoff as a base, then using net realizable value, then using pounds at splitoff.
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Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison
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