Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. None of the products can be sold
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. None of the products can be sold at split-off, but must be processed further. I Further Processing Cost per Gallon Eventual Market Product L-Ten Triol Pioze Required 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Gallons 3,600 4,100 2,200 Price per Gallon $0.60 1.10 1.50 $2.70 5.30 6.90 Joint Cost Grades L-Ten Triol Pioze Allocation 80,022 X 4,000X 11,880 X Total 2. What if it cost $2.10 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four dec Joint Cost Grades L-Ten Triol Pioze Allocation 5,600X Total
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started