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 transcribedimage 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. (2) Fusing (3) Solidifying Department Cost of Alpha-11 Direct labor Manufacturing overhead (1) Distilling $715,000 175,000 150,000 $341,000 163,000 $487,000 405,000 Beta-2 362,000 Products Gallons sold Gallons on hand at year-end Sales Beta-1 181,000 121,000 $724,000 Beta-3 543,000 184,000 $3,258,000 $2,172,000 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.). Net realizable value of Beta-1 Joint costs c. 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

The Auditor Quo Vadis

Authors: Mervyn King, Linda De Beer

1st Edition

1138496774, 978-1138496774

More Books

Students also viewed these Accounting questions

Question

Compare a delusion with a hallucination.

Answered: 1 week ago