Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Split Company produces three products X, Y, and Z from a joint process. Each product may be sold at the split-off point or processed further.

Split Company produces three products X, Y, and Z from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $156,000. Sales values and costs needed to evaluate Split's production policy follow.

Product Units Produced Sales Value at Split Off If Processed Further
Sales Value Additional Costs
x 9,000 $ 49,000 $ 125,000 $ 10,200
y 4,500 42,000 67,000 21,000
z 9,000 52,000 66,000 28,500

The amount of joint costs allocated to product X using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

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

Financial Accounting

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

10th Edition

0072316373, 978-0072316377

More Books

Students also viewed these Accounting questions