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Please Use the excal explanation the answers. The Marketplace Corporation produces two consumer products and a by-product. Zylon is ready for sale after split-off, while
Please Use the excal explanation the answers.
The Marketplace Corporation produces two consumer products and a by-product. Zylon is ready for sale after split-off, while Qytol must be further processed. The by-product is a heavy residue in the bottom of the vat. The net realizable value of the by-product is credited against the $565,000 joint cost of the Heating Department. Volume and cost data for February is as follows: Zylon Qytol By-Product Gallon Produced 200,000 400,000 5,000 Selling Price $2.00 1.10 0.50 Additional Processing o $40,000 o Required: a. Allocate the Heating Department cost to the products using the physical quantities method. b. Allocate the Heating Department cost to the products using the workback method. a. Zylon: $187,500; Qytol: $375,000 b. Zylon: $281,250; Qytol: $281,250 a. Joint costs to allocate: $565,000 - (5,000 * $0.50) = $562,500 Zylon: [200,000/(200,000 + 400,000)] * $562,500 = $187,500 Qytol: [400,000/(200,000 + 400,000)] * $562,500 = $375,000 b. Estimated net realizable values: Zylon: 200,000 * $2 = $400,000; Qytol: (400,000 $1.10) $40,000 = $400,000 Zylon: [$400,000/($400,000 + 400,000)] $562,500 = $281,250 Qytol: ($400,000/($400,000 + 400,000)] * $562,500 = $281,250 ou as .comStep by Step Solution
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