Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kimberly started as an intern for Splish Enterprises last month, and this is the first time she is able to see how the joint process

Kimberly started as an intern for Splish Enterprises last month, and this is the first time she is able to see how the joint process costs
are initially determined and how they are subsequently divvied up. Her mentor shows her the source documents for the DM, DL, and
MOH costs that are necessary for the process to work (adding up to $47,400). This joint process results in three different products,
two of which are intentionally produced (Sift and Rift) and one that is a by-product (Nilt). Of these three products, Sift is ready for sale
immediately after the joint process. Rift and Nilt, however, are both further processed (with no change in volume) in order to generate
a reasonable value for them. While watching her supervisor work through the calculations, Kimberly learns that the company uses the
NRV method for allocating joint costs. The quantities and values for each product at various processing stages are as follows.
(b)
Using the sales method of accounting for by-products, determine how much of the joint cost Kimberly will allocate to each
product. (Round proportion to 4 decimal places, e.g.0.2516 and final answers to 0 decimal places, e.g.5,125. Do not
leave any answer field blank. Enter 0 for amounts.)
eTextbook and Media
image text in transcribed

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

17th Edition

0073379654, 9780073379654

More Books

Students also viewed these Accounting questions