Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information applies to the questions displayed below] Winchester Chemicals uses a joint process to produce VX-4, a chemical used in the manufacture of
The following information applies to the questions displayed below] Winchester Chemicals uses a joint process to produce VX-4, a chemical used in the manufacture of paints and varnishes; HD-10, a chemical used in household cleaning products; and FT-5, a? product that is sold to fertilizer manufacturers. Joint production costs are allocated to the main products on the basis of net realizable value. The by-product is inventoried at its net realizable value, and this value is used to reduce the joint cost before allocation to the main products. During the month of November, Winchester incurred joint production costs of $3,936,200. Data regarding Winchester's November operations are as follows: VX-4 HD-10 FT-5 660,000 None $1,620,000 $ 9.20 350,000 $ 6.60 $2,080,000 $ 14.25 91,000 $ 2.40 None None November production in gallons Sales value per gallon at split-off Final sales value per gallon Finished-goods inventory in gallons on November 30 (all produced during November) 9,600 29,000 2100 Disposal costs of $0.20 per gallon will be incurred in order to sell the by-product
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started