Question
Shiny Floors Company produces four floor cleaners from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to
Shiny Floors Company produces four floor cleaners from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to the nearest dollar.)
Barrels | Sales price per barrel at split-off | Disposal cost per barrel at split-off | Further processing costs | Final sales price per barrel | |
C | 750 | $10.00 | $6.50 | $2.00 | $13.50 |
D | 1,000 | 8.00 | 4.00 | 2.50 | 10.00 |
E | 1,400 | 11.00 | 7.00 | 4.00 | 15.50 |
G | 2,000 | 15.00 | 9.50 | 4.50 | 19.50 |
If Shiny Floors sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E, $3.50; G, $6.00.
a. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product C?
b. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product D?
c. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product E?
d. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product G?
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