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 Cost of Alpha-11 Direct labor Manufacturing overhead (1) Distilling $717,000 172,000 140,000 (2) Fusing 0 $346,000 166,000 (3) Solidifying 0 $495,000 402,000 Products Gallons sold Gallons on hand at year-end Sales Beta-1 181,000 122,000 $724,000 Beta-2 362,000 0 $2,172,000 Beta-3 543,000 181,000 $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 vour 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.) X Answer is complete but not entirely correct. a. Net realizable value of Beta-1 b. Joint costs $ 1,212,000 $ 1,029,000 $ 555,746 X C. Cost of Beta-2 sold d. Ending inventory for Beta-1 $ 75,664 X aro Manufacturing has two production departments, Machining and Assembly, and two service departments, laintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the arious departments for the month of August follow: Proportion of Services Used by Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $125,000 76,000 52,000 40,000 0.1 0.7 0.2 0.2 0.2 0.6 equired: se the step method to allocate the service costs, using the following: . The order of allocation starts with Maintenance. . The allocations are made in the reverse order (starting with Cafeteria). Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not roun intermediate calculations.) To From Maintenance Cafeteria Machining Assembly $ $ 40,000 Service department costs Maintenance 52,000 (52,000) 5,200 Cafeteria (45,200) 36,400 9,040 X 45,440 $ 10,400 27,120 X 37,520 Total Costs $ 0 $ 0 $ Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by ar sign. Do not round intermediate calculations.) From Cafeteria Maintenance Machining Assembly Service department costs $ 52,000 40,000 (40,000) Cafeteria 8,000 Maintenance 24,000 (76,000) 0 8,000 15,200 23,200 12,667 X 20,667 Total Costs $ 0 $ $ $
