Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help. All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process for the year is $98,560. Per

I need help.

image text in transcribed
All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process for the year is $98,560. Per Unit Incremental Units of Selling Price Processing Final Sales Product Output at Split-Off Cost Price Honey butter 8,000 4.00 $3.00 $6.00 Honey jam 16,000 6.40 4.00 14.00 Honey syrup 800 3.00 0.40 3.60 Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product. a. Determine which products should be processed beyond the split-off point. Process Further? Honey butter No Honey jam Yes Honey syrup Yes b. Assume honey syrup should be treated as a by-product. Allocate the joint cost based on (1) units produced, (2) weight, and (3) sales value at split-off. Use the net realizable value approach, assuming by-product revenues reduce joint production costs. (1) joint cost allocated based on units produced Honey butter $ 32000 Honey jam 102,400 Total 134,400 (2) joint cost allocated based on weight Honey butter $ Honey jam o Total (3) joint cost allocated based on sales value at split-off Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Honey butter $ Honey jam Total Please answer all parts of the

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

Accounting for Non-Accounting Students

Authors: John R. Dyson

8th Edition

273722972, 978-0273722977

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago