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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
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 (2) Fusing (3) Soliditying Cost of Alpha-11 Direct labor Man $712,000 170,000 140,000 $343,000 163,000 $497,000 403.000 overhead Products Gallons so Gallons on hand at year-end Sales Beta-1 186,000 127,000 744,000 $2.232,000 $3.348,000 Beta-3 558,000 185,000 Beta-2 372,000 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 tolowing: a. The net realizable value of Beta-1 for the year ended November 30. &Answer is complete but not entirely correct. s 744,000 b. The joint costs for the year ended November 30 to be allocated. Answer is complete and correct. 1,022,000 c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations.) Answer is complete but not entirely correct. 919,597 d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations.) Answer is not complete
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