Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data: The Western Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D.

image text in transcribedData:

image text in transcribed

image text in transcribedimage text in transcribed

The Western Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (December), the output at the splitoff point was as follows: (Click the icon to view the information.) Product A, 253,000 gallons Product B, 92,000 gallons Product C, 69,000 gallons Product D, 46,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $60,000. Western had no beginning or ending inventories. Sales of product C in December were $60,000. Products A, B, and D were further refined and then sold. Data related to December are as follows: Separable Processing Costs to Make Super Products Revenues Super A $ 271,000 $ 400,000 Super B 34,000 100,000 Super D 5,000 50,000 Western had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the December production: Product A, $50,000 Product B, $30,000 Product D, 560,000 . Requirement 1. Compute the gross-margin percentage for each product sold in December, using the different methods for allocating the $60,000 joint costs a. Sales Value at Splitoff. Begin by entering the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Sales value of total Joint costs production at splitoff Weighting allocated A B D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Business Accounts

Authors: John Harrison, Ron Dawber

1st Edition

9780273019954

More Books

Students also viewed these Accounting questions

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago