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12 Terry Chemicals processes a single raw material, Clean-z, In Department 1 of its main production facility. Out of the joint process in Department 1,
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Terry Chemicals processes a single raw material, Clean-z, In Department 1 of its main production facility. Out of the joint process in Department 1, two products emerge: Azyne and Bethanol. Azyne is further processed in Department 2 , which also is a joint production process. After processing in Department 2, two products emerge: AzynePlus and Byzyne. AzynePlus is further processed in Department 3. Bethanol is processed further in Department 4. AzynePlus and Bethanol are considered main products. Byzyne is considered a by-product of AzynePlus. Information on the most recent perlod's production processes follows: - In Department 1, 247,000 units of the raw material Clean-Z are processed at a total cost of $1,660,300. After processing in Department 1, 60 percent of the units are transferred to Department 2, and 40 percent of the units (now unprocessed Bethanol) are - In Department 2 , the materlals recelved from Department 1 are processed at an additional cost of $510,800. Seventy percent of the units become AzynePlus and are transferred to Department 3 . The remaining 30 percent emerge as Byzyne and are sold at $13.40 per unit. The additional processing costs to make Byzyne salable are $118,060. - In Department 3, AzynePlus is processed at an additional cost of $223,648. After this processing. AzynePlus can be sold for $46 per unit. - In Department 4, Bethanol is processed at an additional cost of $2,095,000. A normal loss of 10 percent of the units of good output of Bethanol occurs in this department. The remaining good output is then sold for $88 per unit. Required: Prepare a schedule showing the allocation of the $1,660,300 joint cost to AzynePlus and Bethanol using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product (method 1 in the text). Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the allocation of the $1,660,300 joint cost to AzynePlus and Bethanol using the estimated net realizable value approach. Revenue from the sale of by-products should be credited to the manufacturing costs of the related main product. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign, Round your units to the nearest whole unit. Complete this question by entering your answers in the tabs below. Determine the cost allocation for each product. Note: Do not round intermediate calculations. Round final answers to nearest whole dollarsStep by Step Solution
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