Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta- 1. Beta-2,

image text in transcribed
image text in transcribed
Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta- 1. Beta-2, and Beta-3. Davenport sells Beta-1 at the split-off point, with no further processing; it processes Beta-2 and Beta-3 further before they can be sold. Beta-2 is fused in Department B, and Beta-3 is solidified in Department C. Following is a summary of costs and other related data for the year ended November 30. Department (1) Distilling (2) Pusing (3) Solidifying Cost of Alpha-11 $715,000 0 0 Direct labor 177,000 $344,000 $492,000 Manufacturing overhead 150,000 260,000 405,000 Products Gallons sola Gallons on hand at year-end Sales Beta-1 Beta-2 Beta- 181,000 362,000 543,000 126,000 0 189,000 $724,000 $2,172,000 $3,258,000 Davenport had no beginning inventories on hand at December 1 and no Alpha-11 on hand at the end of the year on November 30. All gallons on hand on November 30 were complete as to processing. Davenport uses the net realizable value method to allocate joint costs. Required: Compute the following: a. The net realizable value of Beta-1 for the year ended November 30, b. The joint costs for the year ended November 30 to be allocated. c. The cost of Beta-2 sold for the year ended November 30, (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount) Required: Compute the following: a. The net realizable value of Beta-1 for the year ended November 30. b. The joint costs for the year ended November 30 to be allocated. c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Net realizable value of Beto-1 b. Joint costs Cost of Beta-2 sold d. Ending inventory for Beta-1

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

Detecting Accounting Fraud Analysis And Ethics

Authors: Cecil W. Jackson

1st Edition

1292059400, 9781292059402

More Books

Students also viewed these Accounting questions