Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood


 

Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,128 cubic yards of wood chips, 14,550 cubic yards of mulch, and 9,896 cubic yards of wood pulp. The joint production process costs a total of $38,000 per batch. After the split-off point, wood chips are immediately sold for $26 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $29 and $24 per cubic yard, respectively. The additional production process of the wood pulp costs $6 per cubic yard, after which it is sold for $37 per cubic yard. The additional production process of the mulch costs $5 per cubic yard, after which it is sold for $32 per cubic yard. Allocate the joint costs of production to each product using the net realizable value method. Do not round intermediate calculations. Round your answers to the nearest dollar. Joint Product Wood chips Wood pulp Mulch Totals Allocation 38,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Heres the allocation of joint costs to each product using the net realizable value method Step 1 Calculate Net Realizable Value per Unit Wood chips Si... 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

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions