Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Abraham Company produces three products - product A, Product B and Product C. Product A and B are the joint products. Product C



imageimage

The Abraham Company produces three products - product A, Product B and Product C. Product A and B are the joint products. Product C has a relatively small market value and is therefore treated as a by-product. During March, 8,000 units of product A, 10,000 units of product B and 2,000 units of product C were processed in refining department. The joint processing cost incurred in the refining department was 204,000. Some additional data is given below: Product A Product B Product C Sales price per unit Production cost after separation $20 $25 $5 5 7 1 Marketing and admin. expenses per unit 1 1 Operating profit per unit The Abraham Company uses market value method to assign cost to product A and product B and reversal cost method to allocate cost to product C. Required: Allocate joint cost to by-product C and joint product A and B. The Sun Inc. produces four joint products - product A, product B, product C and product D. The joint production cost at split-off point is $70,000. The data for the month of April is given below: Product Unites produced Ultimate market value Processing Weight cost after factors per unit split-off A 5,000 $5.50 $1,500 3.0 points B 20,000 1.60 3,000 2.0 points C 15,000 1.50 2,500 4.0 points D 10,000 3.00 5,000 2.5 points Required: Allocate joint production cost using: 1. The market value method 2. The average unit cost method 3. The weighted average method

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 Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions

Question

Normal pdfs have two parameters. Name them.

Answered: 1 week ago

Question

How many different Standard Normal distributions are there?

Answered: 1 week ago