Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $581,000. Additional information follows: If Processed Further Additional Costs Sales Values $ 277,000 307,000 Product Chem-1 Chem-2 Units Produced 305,000 193,000 Sales Value at Split-Off $ 34,400 31,100 Chem-3 209,000 26,600 Chem-4 161,000 28,000 197,000 287,000 868,000 $ 948,000 $ 120,100 $ 1,068,000 $ 237,000 281,000 166,600 263,400 Required: Which if any of the four products would you recommend Barrett Chemicals sell at split-off (and not process further)? correct
Q: erhead per unit was constant at $4,500 fc Year 1 Year 2 Year 3 198 210 150 210 150 280 $294,400…
A: Absorption costing:The absorption costing is different from the variable costing because absorption…
Q: The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the…
A: The objective of the question is to prepare a monthly cash budget for Bridgeport Housewares Inc. for…
Q: Prepare the closing entry for net income. C
A: Closing Entries :The closing entries are required to close the temporary accounts after preparing…
Q: On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $500. During…
A: The imprest fund system helps streamline small cash transactions and reduces the need for frequent…
Q: Curtiss Construction Company, Incorporated, entered into a fixed-price contract with Axelrod…
A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…
Q: Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for…
A: Regression analysis is a statistical method used to analyze the relationship between two or more…
Q: $ 218,000 2,180,000 22,800 196,200 327,000 43,600 49,050 16,800 10,900 32,700 59,500 26,800 45,600…
A: DescriptionBook-Income (Dr) CrBook-tax Adjustments (Dr)Permanent (P) or Temporary (T)Book-tax…
Q: The following is financial information describing the six operating segments that make up Chucktown…
A: Segment disclosures refer to the important data of all the operating segments that will provide a…
Q: Avril Company makes collections on sales according to the following schedule: 30% in the month of…
A: A cash flow budget estimates your business's cash flow over a specific time period. You can use the…
Q: In 2022, Nadia is single and has $100,000 of regular taxable income. She itemizes her deductions as…
A: AMTI:Alternate minimum tax (AMT) is levied on the adjusted total income when the tax on normal…
Q: Concord Inc. had accounting income of $159,600 in 2023. Included in the calculation of that amount…
A: A journal entry is a narration of a fiscal sale in a company's account system. It documents the…
Q: es Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in…
A: Absorption costing is a method of costing that accounts for all the costs of manufacturing which…
Q: You manage a real estate investment company. One year ago, the company purchased 10 parcels of land…
A: Accounting income, or book income, represents the net income reported in a company's financial…
Q: The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada.…
A: Suppliers provide cash discounts as incentives to encourage customers to make prompt payments.…
Q: In 2023, Santiago and Amy are married and file a joint tax return. They have three dependent…
A: For 2023, the maximum Child Tax Credit per qualifying child is $2,000 for children under 5 years old…
Q: A 1 Do research and write a detailed report on the following points: 2 3 - Give the complete…
A: The objective of the question is to understand the concept of fraud, its implications in different…
Q: Applying the lower-of-cost-or-market method to each item of inventory, what should the total…
A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be valued at lower of cost or…
Q: Novak Corp. sells three different categories of tools (small, medium, and large). The cost and net…
A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…
Q: Tyler Sheen is the owner of Stopby Inn. He provided the selected opening balances as at June 1, 2020…
A: The objective of the question is to calculate the total cash disbursement for the months of June and…
Q: es Bill Mason is considering two job offers. Job 1 pays a salary of $41,900 with $4,875 of…
A: Monetary value of a job can be determined by the following formula. Monetary value = Net salary…
Q: Amir, who is single, retired from his job this year. He received a salary of $25,000 for the portion…
A: Salary$25,000Dividend$2,700Pension Income (Taxable Portion) ($1,000 x 4 x 60%)$2,400Social Security…
Q: On July 1, 2025, Sunland Construction Company Inc. contracted to build an office building for Novak…
A: A firm can continue to recognize revenue according to the various phases of project or contract…
Q: T. L. Jones Trucking Services establishes a petty cash fund on April 2 for $500. By the end of…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Demarco and Janine Jackson have been married for 20 years and have four children (no children under…
A: Answer:- The amount that an individual or business is required to pay the government is generally…
Q: Examine the Statement of Cash flows and the accompanying notes to the financial statements found in…
A: Solution:-The inquiry involves evaluating a company's cash movements by reviewing its Statement of…
Q: Asbury Coffee Enterprises (ACE) manufactures two models of coffee grinders: Personal and Commercial.…
A: The overhead refers to the indirect cost incurred by factory for the production of goods. These…
Q: Complete the payroll sheet. Name Earnings to August 31 September Earnings Income Tax Witholding B.D.…
A: Payroll refers to the aggregate compensation payable by the company to its employees for a certain…
Q: Complete the remaining sub-parts
A: Adjusted journal entries made at the end of an accounting period to adjust some accounts to ensure…
Q: The following is the ending balances of accounts at December 31, 2018 for the Valley Pump…
A: Balance sheetBalance Sheet is one of the important financial statement of a company. Balance sheet…
Q: DYE-66302 company sells a single product for $165.00 per unit. The company's variable manufacturing…
A: In this question, we need to compute the contribution margin in order to compute the unit sales to…
Q: e margin g income $750,000 $300,000 $170,000 s the company's margin of safety in dollars? e Choice
A: $425,000Margin of safety= $425,000Margin of safety= current sales- Break-even salesMargin of safety=…
Q: The following data reports on the July production activities of the Molding department at Ash…
A: Under weighted average method cost allocated to units transferred out and units in ending work in…
Q: GreenThumb Organic Fertilizer Company plans to sell 210,000 units of finished product in July and…
A: Planning and budgeting production refer to the process of forecasting, strategizing, and allocating…
Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…
A: FIFO (First In First Out) is the inventory valuation method that determines the cost of goods sold…
Q: Prepare a trial balance with the accounts arranged as illustrated in the chapter and fill in the…
A: The trial balance is a statement of the balance of all accounts or ledger accounts for a particular…
Q: [The following information applies to the questions displayed below] Eva received $74,000 in…
A: The tax liability is determined by the taxable income. The filing status and the amount of taxable…
Q: D P Sales S 68,000 $ 43,600 $ 56,000 $ 25,500 Cost of goods sold Merchandise inventory, beginning…
A: We use the following formulas for determine the amount Sales = Cost of goods sold + Gross…
Q: Actual pounds (9) Flexible Budget For the Month Ended August 31 7,400 Revenue ($4.18q) $ 30,340…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: The Sirius Ltd. purchased a piece of equipment at the very beginning of a fiscal year of 1999. The…
A: To find the present worth of the company's savings due to the Capital Cost Allowance (CCA) over the…
Q: On January 1, 2024, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The…
A: Inventory refers to all the physical items produced by the company for the purpose of either further…
Q: In its first year of operations a company produced and sold 70,000 units of Product A and 17,500…
A: Overhead is the expenses incurred in the production of units other than direct material and direct…
Q: Beavis Construction Company was the low bidder on a construction project to build an earthen dam for…
A: Answer:- Revenue is recognized according to the degree of progress made towards completion when…
Q: TO: Bill Bugnay FROM: M. Lasker Please make the GST Remittances (nomally monthly) to the Receiver…
A: A General Journal is the first place where data is recorded, and every page in the item features…
Q: The Peak View Hotel's occupancy - days and custodial supplies expense over the last seven months…
A: To estimate the cost formula for custodial supplies expense using the high-low method, there is the…
Q: Receivables are valued and reported in the statement of financial position at their gross amount…
A: Financial position (also known as balance sheet) forms a part of the financial statement prepared at…
Q: Desrosiers Ltd. had the following long-term receivable account balances at December 31, 2019. Notes…
A: Cash flow from notes refers to the recording and reporting of financial transactions related to…
Q: [The following information applies to the questions displayed below.] Sound Investments,…
A: The cash collection schedule is prepared to estimate the cash collection during the period. The…
Q: Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all…
A: Amorization schedule: Amortization schedule refers to the calculator to evaluate mortgage and…
Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…
A: For calculating the inventory details such as cost of goods sold and cost of ending inventory, in…
Q: Wages Cleaning supplies pany for the year is $350,000 which includes the following costs: Cleaning…
A: Activity-based costing:Activity-based costing is a method used to allocate overhead and indirect…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
- PIz-3 Renton Corporation incurred total joint cost of P150.000 to manufacture three joint products, R, E ,and N. These products were further processed for an additional cost of P230,000 and then sold for P410,000 as follows: Additional Processing Costs (all variable) P100,000 80,000 50,000 P230,000 Product Sales P200,000 120,000 90,000 P410,000 N Renton received an offer to sell the products to other processors at split-off. If the offer was accepted, sales would have been: R, P110,000; E, P20,000; and N, P35,000. Rentòn forecasts the same production and sales level. Required: Did the net income increase as a result of processing the products further? How much is the overall net income? а. b. Which of the three products should be sold at split-off point? Which should be processed further? REThe meadows Company produced three joint.products at a joint cost of P132,000. Additional information for a recent period is as follows: Product Units produced Sales value Sales value and additional Processing if Processed Add'l Costs P19,800 15,400 11,000 At split-off 13,200 8,800 4,400 P88,000 77,000 55,000 Sales Value P121,000 99,000 66,000 Required: Allocate joint costs using: 1. Sales value at split-off 2. Physical units ABCCat Company produces products C, A, and T from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $75,000 per year are allocated to the products based on the relative number of units produced. Data for Cat's operations for the current year are as follows: Units Allocated Joint Sales Value Product Produced Production Cost At Split-off C 12,000 $23,000 $80,000 A 8,000 34,000 71,000 T 13,000 18,000 51,000 Product C can be processed beyond the split-off point for an additional cost of $29,000 and can then be sold for $103,000. Product A can be processed beyond the split-off point for an additional cost of $31,000 and can then be sold for $116,000. Product T can be processed beyond the split-off point for an additional cost of $17,000 and can then be sold for $65,000. Which products should be processed beyond the split-off point? (Show all calculations) What is a joint product cost? Explain in your own words.
- Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.P12-2 Valera Company incurred total joint costs amounting to P102,000 in producing products A, B, and C. Additional information are provided below: Additional Processing Costs Adjusted Market Market Disposal Costs value at Products Units Produced Value split-off P15.00 P20,000 30,000 10,000 P60,000 А P19.00 4,000 6,000 10,000 P5,000 2,000 1,000 P8,000 В 10.00 11.00 8.00 9.60 20,000 Required: Calculate the total production cost using: Quantitative or physical unit method a. b. Sales value at split-off method C. Net realizable value (or adjusted sales value) methodBSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as foliows: Units produced (20.000; 30,000; 5,000 and 5,000); Unit sold (18.000; 25,000; 5,000 and 5,000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000; P210.000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000: P500 and P400); Desired profit on Cand D (P2.000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products? P11,136 P12,036 P13,100 P14,000 ESBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced…
- HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answerBSBA Company produced two joint products A and B. and by-products and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20.000; 30,000: 5.000 and 5,000); Unit sold (18.000: 25.000; 5,000 and 5.000); Final unit selling prices (P25.00: P20.00; 2.00 and P1.50): Further processing costs (P150.000; P210.000; P5,000 and P4,000); Selling and Administrative expenses (P15,000: P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products?* P11,136 P12,036 P13,100 P14,000 BSBA Company produced two joint products A and B. and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced…BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs (P150,000: P210.000; PS,000 and P4.000); Selling and Administrative expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1.500). If the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product B? O P10.42 P10 P10.49 O P11.00 BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20.000; 30.000; 5,000 and 5,000): Unit sold (18,000; 25.000:…
- Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company incurred costs of $66,000. Product H weighs 44 pounds and product C weighs 66 pounds. Product H sells for $250 per pound and product C sells for $295 per pound. Based on a physical measure of output, allocate joint costs to products H and C.Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25,000; 5,000 and 5,000); Final unit selling prices (₱25.00; P20.00; ₱2.00 and P1.50); Further processing costs (P150,000; P210,000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products? P11,136 P12,036 P13,100 P14,000