Question 7,8,9.

Chapter 6 Costing By-Products and Joint Products 141 7. Joint product cost allocation--market value method. Arlington Company manufactures three different products from a single raw material. A summary of production costs shows: Product Total Output in Kilograms....... 80 000 200 000 160 000 440 000 Sales price per kilogram... $.75 $1.00 $1.50 Separable Costs Total SKY Cost Production costs: Materials.... - - $ 90.000 Direct aboum . $ 3,000 $20,000 $30.000 80.000 Variable factory overhead............. 2,000 10,000 16,000 45.000 Fixed factory overhead................... 15,000 34.000 30.000 115,000 All separable costs have been assigned to products but the joint cost has not been allocated. All of the year's output was sold. Required: Compute the gross profit for each product, allocating the joint cost by the market value method. (CGAAC adapted) 8. Joint product cost allocation-market value method. Cagle Company spent $158,400 on raw materials, then processed this material at a cost of $171,600, resulting in three products: 6,000 units of B. 4,000 units of R, and 3,000 units of Y. To make these products salable, an additional $50,000 is spent on B. $30,000 on R, and $40,000 on Y. Unit sales prices are: B. $40; R. $50; and Y. $60. Required: UIect laDor. $30,000 16,000 30,000 80,000 45,000 115,000 $ 3,000 $20,000 Variable factory overhead.. Fixed factory overhead... 2,000 10,000 15,000 34,000 All separable costs have been assigned to products but the joint cost has not been allocated. All of the year's output was sold. Required: Compute the gross profit for each product, allocating the joint cost by the market value method. (CGAAC adapted) 8 Jolnt product cost allocation-market value method. Cagle Company spent $158,400 on raw materials, then processed this material at a cost of $171,600, resulting in three products: 6,000 units of B, 4,000 units of R, and 3,000 units of Y. To make these products salable, an additional $50,000 is spent on B, $30,000 on R, and $40,000 on Y. Unit sales prices are: B, $40; R, $50; and Y, $60. Required: (1) Compute a unit cost for each product for inventory costing, using the market value method for joint cost allocation. (2) The company has an opportunity to sell all of its B output at the split-off point for $34 per unit. Advise management as to whether B output should be sold at the split-off point or after further processing. (CGAAC adapted) 9. Joint product cost allocation-average unit cost and market value methods. Miller Company manufactures three products, A, B, and C, from a joint process. The joint costs for Janyary totaled $100,000. Additional January information follows: Processing Cost After Split-Off Ultimate Market Value Product Quantity 3,000 4,000 3,000 $20,000 30,000 50,000 $ 60,000 110,000 90,000 A UD, 4,000 units of A, and 3,000 units of Y. To make these products salable, an additional $50,000 is spent on B. $30,000 on R, and $40,000 on Y. Unit sales prices are: B. $40; R, $50; and Y. $60. Required: (1) Compute a unit cost for each product for inventory costing, using the market value method for joint cost allocation. (2) The company has an opportunity to sell all of its B output at the split-off point for $34 per unit. Advise management as to whether B output should be sold at the split-off point or after further processing. (CGAAC adapted) 9. Joint product cost allocation-average unit cost and market value methods. Miller Company manufactures three products, A, B, and C, from a joint process. The joint costs for January totaled $100,000. Additional January Information follows: Processing Cost Ultimate Product Quantity After Split-Off Market Value 3,000 $20,000 $ 60,000 4,000 0 30,000 110,000 50.000 90,000 Required: (1) Compute the total production cost for each product, using the average unit cost method. (2) Compute the total production cost for each product, using the market value method. 10. Joint product cost allocation market value and weighted average methods. Bulldon Company produces three joint products: Buildon, Bulldeze, and Buildrite. Total Joint production cost for November was $21,000. 3,000