Question
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $199,000. Additional information
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $199,000. Additional information follows.
| If Processed Further | ||||||||||
| Product | Units Produced | Sales Value at Split-Off | Sales Values | Additional Costs | ||||||
| KA | 81,000 | $ | 276,000 | $ | 330,000 | $ | 47,000 | |||
| KB | 56,700 | 241,500 | 250,000 | 44,000 | ||||||
| KC | 24,300 | 172,500 | 240,000 | 33,000 | ||||||
Required:
a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $47,000 if processed further)?
b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $44,000 if processed further)?
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Safety Health And Environmental Auditing A Practical Guide
Authors: Simon Watson Pain
1st Edition
1439829470, 978-1439829479
