Question
C. Young & Sons, Inc. derives six different items from a single common production process. They are all produced simultaneously at the end of the
C. Young & Sons, Inc. derives six different items from a single common production process. They are all produced simultaneously at the end of the process.
Four of these items are regarded as the company's principal products; two are treated as by-products.
The following summarizes production and sales data for April 2021:
Units Produced | Units Sold | Variable cost per unit | Fixed Costs ($) | Final Unit Selling Price | |
Main products A B C D |
200,000 100,000 150,000 50,000 |
180,000 90,000 140,000 50,000 |
$0.10 0.12 0.08 0.10 |
$10,000 8,000 18,000 5,000 |
$0.75 1.00 1.60 2.00 |
By-products M N
| 40,000 20,000 | 30,000 20,000 | $0.05 $0.00 | $2,500 1,000 | $0.30 0.25 |
The company uses the Net Realizable Value method of allocating common costs.
Compute the common production costs to be allocated to each of the main products,
assuming common costs were $387,000 for the month of April, 2021.
Flag question: Question 7
Question 71 pts
How much common cost is applied to A?
Group of answer choices
$91,080
$90,120
$92,888
$91,120
$92,880
Flag question: Question 8
Question 81 pts
How much common cost is applied to D?
Group of answer choices
$68,310
$68,940
$69,660
$67,590
$68,000
Flag question: Spacer
To prevent follow-through errors in Q#9- #13, ignore the $387,000 for questions 7
and 8 and your calculations to that point.
Assume common costs to be allocated for April, 2021 were $398,500 in total, after adjusting for by-products, and were allocated to the main products as follows:
A - $110,000
B - 55,000
C - 162,000
D - $71,500
TOTAL $398,500
Compute the unit production costs of the main products for the month of April, using the common cost allocation above and whatever other figures from the previous chart that you feel are necessary.
Flag question: Question 9
Question 91 pts
What is the Unit production cost of C?
Group of answer choices
$0.88
$1.28
$1.25
$1.63
$1.80
Flag question: Question 10
Question 101 pts
What is the Unit production cost of B?
Group of answer choices
$0.75
$0.80
$0.70
$1.25
$1.05
Flag question: Question 11
Question 111 pts
What is the gross profit of product A?
Group of answer choices
$9,000
$10,000
$15,000
$25,000
$(4,000)
Flag question: Question 12
Question 121 pts
What is the gross profit of product B?
Group of answer choices
$35,000
$10,000
$22,500
$(5,000)
$25,000
Flag question: Question 13
Question 131 pts
The total gross profit on all four main products (A, B, C, D) is
Group of answer choices
$99,300
$39,450
$86,400
$94,800
$74,200
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