Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 6-13 Computing Joint Costs - Sales Value at Split-Off and Net Realizable Value Methods D.L. Manufacturing Inc.'s joint cost of producing 1,000 units of
Exercise 6-13 Computing Joint Costs - Sales Value at Split-Off and Net Realizable Value Methods D.L. Manufacturing Inc.'s joint cost of producing 1,000 units of Product A,500 units of Product B, and 500 units of Product C is $20,000. The unit sales values of the three products at the split-off point are Product A-\$20, Product B-\$200, and Product C-\$160. Ending inventories include 100 units of Product A,200 units of Product B, and 300 units of Product C. In your interim calculations, round sales value percentages and allocated joint costs to two decimal places. a. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales value at split off. $ QUESTION 13 b. Assume that Product C can be sold for $200 a unit if it is processed after split-off at a cost of $25 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values. QUESTION 14
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started