Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Joint cost allocation; sell or process further In a joint process, Wear Art produces precut fabrics for three products: dresses, jackets, and blouses. Joint

image text in transcribed

Joint cost allocation; sell or process further In a joint process, Wear Art produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of relative sales value at split-off. The company can choose to process each of the products further rather than sell the fabric at split-off. Information related to these products follows. Number of units produced Joint cost allocated Sales values at split-off point Additional costs of processing further Sales values after all processing Dresses Jackets Blouses Total 24,000 38,400 14,400 ? $331,200 76,800 ? $864,000 ? $552,000 $192,000 $1,440,000 $62,400 $48,000 $187,200 $297,600 $720,000 $643,200 $504,000 $1,867,200 a. What amount of joint cost should be allocated to dresses and blouses? Dresses Blouses Allocated joint costs $ 0 $ 0 b. What is the sales value at the split-off point for dresses? $ 0 c. Should any of the products be processed beyond the split-off point? Show computations. Dresses Jackets Blouses Net benefit (cost) of further processing $ 0 $ 0 $ 0 Process Further? dresses jackets blouses d. If 28,800 jackets are processed further and sold at the regular selling price, what is the gross profit on the sale? $ 0

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

Accounting Texts and Cases

Authors: Robert Anthony, David Hawkins, Kenneth Merchant

13th edition

1259097129, 978-0073379593, 007337959X, 978-1259097126

More Books

Students also viewed these Accounting questions

Question

Find the first derivatives. f(P) = P 3 + 3P 2 - 7P + 2

Answered: 1 week ago