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1. a. XYX Corporation produces three products, Alfa, Beta, and Gama. Alpha and Gama are a combined product, while Beta is a byproduct of Alfa.
1. a. XYX Corporation produces three products, Alfa, Beta, and Gama. Alpha and Gama are a combined product, while Beta is a byproduct of Alfa. No combined costs will be allocated to by-products. The production process for the current year is as follows: In department 1, 110,000 pounds of Rho raw material were processed for a total cost of $ 120,000. after processing, 60% of the units were transferred to Department 2, and 40% of the units (now called Gama) were transferred to Department 3. b. In Department 2, the product is further processed for an additional fee of $ 38,000. 70% of the units (now called Alfa) were transferred to Department 4 and 30% of the units were by-products (Beta) which sold for $ 1.20 per pound Marketing expenses related to Beta were $ 8,100. In Department 4, Alfa is processed with an additional fee of @ 23,660. once the process is complete, Alfa is ready to sell for $5 per pound.. d. In Department 3, Gama was processed for an additional fee of $ 165,000. within this department there was a normal loss of Gama units, which amounted to 10% of the output. The rest of the good units sell for $ 12 per pound C. Question : Create a schedule that shows the combined cost allocation of $ 120,000 to Alfa and Gama, using the market price method at the breakpoint and treating the net realizable value of Beta in addition to Alfa's sales revenue
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