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show work please and thank you Jackson Corporation began operations on January 1st. They have a manufacturing process that creates three joint products: #452, #585
show work please and thank you
Jackson Corporation began operations on January 1st. They have a manufacturing process that creates three joint products: #452, #585 and #799. The process results in 10,000 gallons of #452, 20,000 gallons of #585 and 2,000 gallons of #799. The three products also have the following information per gallon: #452 #585 #799 Sales Price at Split-off $8 $10 $2 Costs After Split-off $2 $4 $1 Final Sales Price $14 $18 $5 The joint manufacturing costs incurred were $200,000. Assume that at the end of January there were 1,000 gallons of #452, 4,000 gallons of #585 and 500 gallons of #799 unsold. Required: a. Calculate the value of the ending inventory for each product for each of the following methods: 1. Physical measures based on gallons 2. Sales value at split-off 3. Net realizable value b. Now assume that #799 is a byproduct, calculate the total costs for the joint products assuming that Jackson uses the net realizable value method and that byproducts are recognized at production as a cost reduction. c. What is the amount of ending inventory for #799 if it is a byproduct and recognized at production? Recognized at sale Step by Step Solution
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