Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Take me to the text Fox Company processes a chemical that yields two joint products - Clean and Wash. Each batch costs $1,900 and

image text in transcribed

Take me to the text Fox Company processes a chemical that yields two joint products - Clean and Wash. Each batch costs $1,900 and produces 44 gallons of Clean and 56 gallons of Wash. Both products need additional processing after the initial split-off. Clean is processed further at a cost of $2.50 per gallon. Wash is processed further at a cost of $2.25 per gallon. Clean and Wash can be sold for $22 and $19 per gallon, respectively. Management at Fox Company does not like the joint cost allocation results of the net realized value method. They want you to undertake a cost allocation so that the gross margin percent (revenue minus gross margin divided by revenue) is the same. Senior management feels that this will result in a better distribution of the joint cost. Allocate the $1,900 joint cost using the net realizable value method. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal place. Do not use the negative sign. Clean Wash 1839200.00 x $2340800.00 S Total Revenue per Batch Additional Processing Costs $ $ Net Realizable Value $ $ $ Joint Cost Allocation $ $

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_2

Step: 3

blur-text-image_3

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: W. Steve Albrecht, James D. Stice, Earl K. Stice

10th edition

324645570, 978-0324645576

More Books

Students also viewed these Accounting questions