Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 17-29 Joint Costs; Allocation and Production Decisions [The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for

Problem 17-29 Joint Costs; Allocation and Production Decisions

[The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP3, a chemical used in hot tubs and swimming pools; PST4, a chemical used in pesticides; and RJ5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondis operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP3, PST4, and RJ5.

HTP3 PST4 RJ5
Finished goods inventory in gallons (October 1) 23,500 59,700 4,100
October sales in gallons 760,000 380,000 205,000
October production in gallons 920,000 460,000 225,000
Additional processing costs $ 984,000 $ 931,000 $ 70,000
Final sales value per gallon $ 5.10 $ 7.10 $ 6.10

Problem 17-29 Part 1

Required: 1. Determine Biondi Industries allocation of joint production costs for the month of October. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.) image text in transcribed

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Joint Products } & AllocationofJointCost \\ \hline HTP-3 & \\ \hline PST-4 & \\ \hline RJ-5 & \\ \hline \end{tabular}

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

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

Internal Auditing In Savings And Credit Cooperative Societies

Authors: Daniel Njuguna

1st Edition

B0C8SCJKRT, 979-8223128649

More Books

Students also viewed these Accounting questions