Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,500 $0.60 $2.80 Triol 4,000 1.00 4.80 Pioze 2,300 1.40 6.40 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. Grades Joint Cost Allocation L-Ten 4,597 Triol 15,200 Pioze Total 3,220 12,898 2 What if it cost $2.00 to process each gallon of Triol bovend the colit-off point? How would that affect the allocation of joint cost to the three products? Round.
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