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please show the work. thanks :) Carter Corporation produces three products, Product 1, 2 and 3, through a joint process. The cost of this process
please show the work. thanks :)
Carter Corporation produces three products, Product 1, 2 and 3, through a joint process. The cost of this process is $500,000. At the split-off point, the products have the following characteristics: Units Sales Produced Pounds Gallons Value Product 1 10,000 20,000 20,000 $250,000 Product 2 20,000 20,000 60,000 160,000 Product 3 10,000 60,000 40,000 40,000 All three products can be processed further. If processed further, the final market value of the product 1, product 2, and product 3 are $350,000, $250,000 and $60,000, respectively. The costs to process these products further are as follows: Costs After Split-off $75,000 2 $50,000 $10,000 a. Using the above information, find the total costs for each product using the following methods: 1. Physical measures based on units 2. Physical measures based on pounds 3. Physical measures based on gallons 4. Sales value at split-off 5. Net realizable value b. Now assume that product 3 is a byproduct, allocate the joint costs to the products using the net realizable value method assuming that all byproduct units are sold and are recorded as a: 1. separate revenue item 2. cost reduction c. Now again assume that product 3 is a byproduct. Also assume that ending inventory. for all three products represent 10% of total units produced. If Carter uses the physical measures method based on units, what is the value of the ending inventory for all products if Carter recognizes byproducts at: 1. production as a cost reduction 2. production as a separate revenue item 3. at sale as a cost reduction 4. at sale as a separate revenue item Step by Step Solution
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