Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30.

No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.

Products A B C
Pounds sold 20,000 61,000 71,000
Pounds on hand at June 30 53,000 0 40,000
Sales revenues $ 49,000 $ 305,000 $ 372,750

Departments X Y Z
Raw material cost $ 168,000 $ 0 $ 0
Direct labor cost 71,500 91,000 280,500
Manufacturing overhead 29,000 31,100 101,500

Required:

a. Determine the following amounts for each product: (1) estimated net realizable value used for allocating joint costs, (2) joint costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30.

b. Assume that the entire output of product A could be processed further at an additional cost of $5.80 per pound and then sold for $12.90 per pound. Compute the incremental income from further processing A.

c. Considering the results of part b, should the company process product A further?image text in transcribedimage text in transcribed

Please answer the question in the required format!!!!!!!! thank you!!!

Required A Required B Required C Determine the following amounts for each product: (1) estimated net realizable value used for allocating costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory cos round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Product Estimated Net Realizable Values Joint Costs Cost of Goods Sold Ending Inventory Product A Product B Product C Total 0$ 0 $ 0$ Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that the entire output of product A could be processed further at an additional cost of $5.80 per pound and then sold for $12.90 per pound. Compute the incremental income from further processing A. Incremental income

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_2

Step: 3

blur-text-image_3

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

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions