Question
Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Delta Kappa Omega Total Units
Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow.
Delta Kappa Omega Total
Units produced .....................................................................................................4,000 2,000 1,000 7,000
Joint cost allocation ...........................................................................................$36,000 ? ? $60,000
Sales value at split-off ........................................................................................... ? ? $15,000 $100,000
Additional costs if processed further ...................................................................$7,000 $5,000 $3,000 $15,000
Sales value if processed further ........................................................................$70,000 $25,000 $20,000 $115,000
Required:
1. Assuming that joint costs are allocated using the relative-sales-value method, what were the joint costs allocated to products Kappa and Omega?
2. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Delta?
3. Use the net-realizable-value method to allocate the joint production costs to the three products.
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