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The Takita Company operates a simple chemical process to convert a single material into three separate items, referred to here as x , Y ,

The Takita Company operates a simple chemical process to convert a single material into three separate items, referred to here as x,Y, and Z. All three end products are separated simultaneously at a single splitoff point.
(Click the icon for additional information.)
During 2020, the selling prices of the items and the total amounts sold were as follows:
(Click the icon to view the sales information.)
Read the requirements.
More info
x-70 tons sold for $2,000 per ton
pods sold for income stateme ost allocation methods.
Y-240 tons sold for $1,500 per ton
Z-380 tons sold for $1,000 per ton
at the point of splitoff and th
The total joint manufacturing costs for the year were $400,000. Takita spent an additional $250,000 to finish product Z. There were no beginning inventories of x,Y, or Z. At the end of the year, the following inventories of completed units were on hand: x,130 tons; Y,60 tons; Z,20 tons. There was no beginning or ending work in process.
The Takita Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point.
(Click the icon for additional information.)
During 2020, the selling prices of the items and the total amounts sold were as follows:
(Click the icon to view the sales information.)
Read the requirements.
(a) Start with the NRV cost allocation method. Begin by computing the net realizable value for total production at the point of splitoff and the weighting for each product. (Enter the weights to two decimal places.)
Net realizable value of total production at splitoff
Weighting
More info
\table[[Products x and Y are ready for sale immediately upon splitoff without further],[processing or any other additional costs. Product Z, however, is processed further],[before being sold. There is no available market price for Z at the splitoff point.]]
More info
x-70 tons sold for $2,000 per ton
Y-240 tons sold for $1,500 per ton
Z-380 tons sold for $1,000 per ton
The total joint manufacturing costs for the year were $400,000. Takita spent an additional $250,000 to finish product Z. There were no beginning inventories of x,Y, or Z. At the end of the year, the following inventories of completed units were on hand: x,130 tons, Y,60 tons; Z,20 tons. There was no beginning or ending work in process.
Requirements
Compute the cost of inventories of x,Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31,2020, using the following joint-cost-allocation methods:
a. NRV method
b. Constant gross-margin percentage NRV method
Compare the gross-margin percentages for x,Y, and Z using the two methods given in requirement 1.

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