Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a. using estimate net realizable value, after allocating the $144,000 of joint costs, compute total cost per gallon of xyla b. using estimated net realizable
a. using estimate net realizable value, after allocating the $144,000 of joint costs, compute total cost per gallon of xyla b. using estimated net realizable value, what amount of the $144,000 of joint costs would be allocated to the skim goat ice cream? c. using physical measure method, what amount of the $144,000 of joint cost woukd be allocated to skim goat ice cream d. Using physical measure method, what amount of the $144,000 of joint costs would be allocated to Xyla? e. Using physical measure method, after allocating $144,000 of joint costs, compute total cost per gallon on Xyla? The Atlanta Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. Total cost of purchasing and processing 120,000 gallons of goat milk in Joint Process was $144,000 which resulted into 35,640 gallons of goat milk and 72,360 gallons of skim goat milk (the remaining materials was shrinkage). Additional shrinkage occurred during additional processing as follows: Condensed 35,640 gallons of goat milk is processed further at $3.60 per gallon to yield 33,600 gallons of a medicinal milk product, called Xyla (the remainder is shrinkage). Xyla can be sold for $21.60 per gallon. The 72,360 gallons of Skim goat milk can be processed further at $2.40 per gallon to yield 64,800 gallons of skim goat ice cream. Each gallon of skim goat ice cream can be sold for $14.40 per gallon. The following information was collected for the month of March: Using estimated net realizable value, after allocating the $144,000 of joint costs, compute total cost per gallon of Xyla
a. using estimate net realizable value, after allocating the $144,000 of joint costs, compute total cost per gallon of xyla
b. using estimated net realizable value, what amount of the $144,000 of joint costs would be allocated to the skim goat ice cream?
c. using physical measure method, what amount of the $144,000 of joint cost woukd be allocated to skim goat ice cream
d. Using physical measure method, what amount of the $144,000 of joint costs would be allocated to Xyla?
e. Using physical measure method, after allocating $144,000 of joint costs, compute total cost per gallon on Xyla?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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