Answer all

alue of finished product, what proportion of joint 31 15. Gilbert Manufacturing Company manufactures two products, Alt and Bat. They are initially processed from the same raw material and then after splitoll further processed separately. Additional information is as follows: int process. The joint processing costs are 12,000 and $8.000, respectively. After 20 and sold for $21,000 whereas product Y is sales value at splitoff method for allocating Alt 22 a joint process. Joint costs are - $4,560 to process 500 gallons of The sales value at splitoff is $10 per ade into product SUPER B at an -000 gallons of product SUPER B? Final sales price Total Joint costs prior to splitoff point $9,000 $6.000 $15.000 Costs beyond splitoff point 2 2 6,600 3.000 3,000 6,000 Using the net realizable value at splitoff point approach, what are the assigned joint costs of Alt and Bat, respectively? (a) $3,300 and $3,300 (c) $4,400 and $2,200 (b) $3,960 and $2,640 (d) $4,560 and $2,040 16. Grafton Company produces joint products A and B in Department 1 from a process, which also yields byproduct W. Product A and byproduct W are sold after separation, but product B must be further processed in Department 2 before it can be sold. The cost assigned to the byproduct is its market value less $.40 per pound for delivery expense (NRV method). Information relating to a batch produced in July is presented below. Product Production (in pds) Sales Price per Pound A 2,000 $4.50 B 4,000 9.00 w 500 1.50 ess. Additional information is as es value at splitoff Joint cost in Department 1 $18,000 Product B additional process cost in Department 2 $10,000 How much of the joint cost incurred in Department 1 should be allocated to the joint products assuming that the NRV of the byproduct is treated as reduction of production costs? (a) $17,250 (b) $17,450 (c) $17,800 (d) $18,550 17. A company manufactures two joint products at a joint cost of $1,000. These products can be sold at splitoff or, when further processed at an additional cost, sold as higher quality items. The decision to sell at splitoff or further process should be based on the (a) Assumption that the $1,000 joint cost is irrelevant. (b) Allocation of the $1,000 joint cost using the relative sales value approach. (c) Assumption that the $1,000 joint cost must be allocated using a physical-measure approach. (d) Allocation of the $1,000 joint cost using any equitable and rational allocation basis. (e) I don't have any idea what this question is asking. Use the following information for questions 18 and 19. mous s is ys 41 Watkins Co. produces three products, X, Y, and Z, from a particular joint process. Each product may be sold at the point of splitoff or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond splitoff. Joint production costs for the year were $60,000. Sales values and costs needed to evaluate Watkins production policy follow