Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $320,000 in the production of 25,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: W X Separable processing costs $ 45,000 $ 150,000 Sales price (per gallon) if processed beyond split-off $ 15 $ 13 What would be the joint cost allocated to X under the net-realizable-value method ? Note: Do not round intermediate calculations.
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: Cash Collection Budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: Vaughn Corporation shipped $18,400 of merchandise on consignment to Gooch Company. Vaughn paid…
A: Journal entry refers to the entries which record the transactions of the business into the books of…
Q: ง c The records of Marigold Menswear report the following data for the month of September: Sales…
A: Retail method of inventory valuation is used to estimate store inventory, it measures the cost of…
Q: Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.60…
A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…
Q: Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit…
A: Depreciation is the allocation of the cost of depreciable assets over the useful years. The company…
Q: Give me correct answer with explanation.f
A: The objective of the question is to calculate the unit variable cost for K Fancy Pasty Puffs for…
Q: Pronghorn Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December…
A: A business combination is when one company called the parent company acquires more than 50% of the…
Q: Marzipan Company reported the following data for 2016: Cost of Beginning Inventory: Invoice Cost of…
A: Cost of goods sold during the year can be calculated by reducing the value of ending inventory from…
Q: On July 1, 2025, Wildhorse Construction Company Inc. contracted to build an office building for…
A: Percentage of completion method is the method used in the construction accounting as it helps in…
Q: When you undertook the preparation of the financial statements for Cullumber Company at January 31,…
A: Retail methodRetail method is a technique used in inventory valuation. The retail inventory method…
Q: Please dont use any AI. It's strictly prohibited. Help me please asap.
A: a) sxy= -11.50 b) rxy= -0.39 c) There is negative linear relationship between x and…
Q: i need the answer quickly
A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…
Q: Required: Compute the following variances for April: 1. The materials price and quantity variances.…
A: A budget is a tool to estimate future cost revenue and expenses. After developing a budget, the…
Q: Sales (@$61 per unit) Cost of goods sold (@$40 per unit) Gross margin Selling and administrative…
A: Absorption costing and variable costing represent two separate methodologies for computing net…
Q: Which of the following would create a deferred tax asset? A. Receiving interest from a municipal…
A: A deferred tax asset is an account concept representing implicit unborn duty benefits that arise…
Q: what are some examples of how historical events and changing economic landscapes have influenced the…
A: Dear student, below is the answer to your assignment. Kindly follow it closely for a clear…
Q: chase transactions for the year. DateTransaction Number of Units Unit Cost inventory50$78$3,900May…
A: Inventory valuation is based on the flow-through issue used by the organization. It can be the first…
Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Perpetual Inventory System is a method of costing the ending inventory and the inventory sold. Under…
Q: Please solve all 4 requiremetns
A: 1. Schedule of Expected Cash Collections:- July Collections: $204,850- August Collections:…
Q: Banderas, Inc. has three investment centers, Red, Brown, and Black. The following data is available…
A: ROI means return on investment. It means the amount of return earned by the entity using its…
Q: HAS-71452 Company uses a job-order costing system. Its plantwide predetermined overhead rate uses…
A: Total manufacturing costs is the total cost incurred in the manufacturing of product during the…
Q: Journal entries for an account payable denominated in Mexican Pesos ($US weakens and strengthens)…
A: The Foreign Currency Exchange Gain or loss is the gain earned or loss incurred in case of conversion…
Q: Bates & Hill Fabricators produces commemorative bricks that organizations use for fundraising…
A: Budget means the expected value of future. Budget will be compared with actual value and variance is…
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…
A: The journal entries are prepared to record the transactions on regular basis.The journal keeps the…
Q: Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the…
A: We need to post the journal entries to the T accounts for the preparation of financial statements.
Q: Millington Materials is a leading supplier of building equipment, building products, materials, and…
A: Inventory costing, also known as inventory cost accounting, is the process in which companies…
Q: On 30 June 20X7, Edison Ltd acquired all the assets and liabilities of Oliver Ltd, with Oliver Ltd…
A: The objective of the question is to prepare the necessary journal entries in the records of Edison…
Q: Gypsum Park Recreation is exploring a competitive bidding situation. The firm, which currently has…
A: Gypsum Park Recreation should consider a minimum bid price that covers at least $621,000 to ensure…
Q: A saturated solution contains 1.80g KCIO3 in 25.0mL water at 20.0 degree celcius. Determine the…
A: The objective of the question is to determine the solubility of KCIO3 in water at 20 degrees Celsius…
Q: Hardy Company reports budgeted merchandise purchases below. For those purchases, 40% of a month's…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: Require Prepare a exible budget performance report hat shows the company's revenue and spending…
A: Variance-Variance Analysis helps an organization to understand the variations in the actual results…
Q: Toy Story Ltd is a company listed on the JSE Security Exchange. The company has a 31 March yearend.…
A: The objective of the question is to prepare the accounting notes for Toy Story Ltd for the year…
Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…
A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…
Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…
A: Variable costing and absorption costing are two different methods used for allocating manufacturing…
Q: Headland Corporation issued 20-year, $9,600,000 face value, 9% convertible debentures on January 1,…
A: Basic Earnings Per Share: Investors may find out how much of a company's net income is allocated to…
Q: Multiple-Product Break-even, Break-Even Sales Revenue Andrews Sporting Goods, Inc., produces and…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: On January 2, 2020, Sheffield Company acquired 90% of the outstanding common stock of Wildhorse…
A: Consolidated financial statements are prepared when one entity acquires more than 50% of shares in…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit…
A: Weller CompanySelling and Administrative Expense BudgetFor the Year Ending [Insert Year] (assuming…
Q: Give me correct answer with explanation.j
A: The question is asking us to determine the impact on the company's operating income if the Fashion…
Q: On June 1, 2023, Oriole Company and Waterway Company merged to form Wildhorse Inc. A total of…
A: Earnings Per Share (WPS) is the formula which determines the earnings available to each shareholder…
Q: i need the answer quickly
A: The acquisition process may be characterized as the exchange of a specified sum of money for the…
Q: [The following information applies to the questions displayed below] This year Lloyd, a single…
A: Solution:-To determine Lloyd's underpayment penalty for his taxes, we must adhere to the IRS…
Q: education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=172ba398-6ec1-4c22-982d-b53 The…
A: The objective of the question is to prepare the necessary journal entries for Oriole Cosmetics and…
Q: At the end of his company's first year in operation, Daniel is allocating costs to the company's…
A: Joint cost is the total cost incurred in the manufacturing of two or more joint products during the…
Q: 4. Undertake a sensitivity analysis assessing the impact of operating leverage on net income based…
A: The objective of the question is to conduct a sensitivity analysis to assess the impact of operating…
Q: 4:07 Chapter7Activity Q Û Name: Astry Hernandez Canales Periodic inventory by three methods; cost of…
A: Ex 7-13 CostInventory MethodMerchandise…
Q: Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In…
A: The direct materials efficiency variance is a sub-variance of the direct materials cost variance.…
Q: Question 2 Part A Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her…
A: Partnership: A partnership is a kind of business organization where two or more people work together…
Q: Question: Which of the following methods of capital budgeting accounts for the time value of money?…
A: The question is asking to identify the capital budgeting method that takes into account the time…
Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $320,000 in the production of 25,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data:
|
W |
X |
Separable |
$ 45,000 |
$ 150,000 |
Sales price (per gallon) if processed beyond split-off |
$ 15 |
$ 13 |
What would be the joint cost allocated to X under the net-realizable-value method ?
Note: Do not round intermediate calculations.
Step by step
Solved in 1 steps
- LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X–$30, Product Y–$100, and Product Z–$90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales values at split-off. Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for 2.000. Processing costs are 3,000 to process the 1,000 gallons of Duointo 800 gallons of Big and 200 gallons of Mini. The selling price is 9 per gallon for Big and4 per gallon for Mini. If the physical units method is used to allocate joint costs to the finalproducts, the total cost allocated to produce Mini is: a. 500. b. 4,000. c. 1,000. d. 4,500.
- Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is 9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per subassembly. 3. Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. What happens to product cost if the time to produce a unit is decreased to 25 minutes? How can a firm encourage managers to reduce cycle time? Finally, discuss how this approach to assigning conversion cost can improve delivery time. 4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. How much non-value-added time is being used? How much is it costing per unit? 5. Cycle time, velocity, MCE, conversion cost per unit (theoretical conversion rate actual conversion time), and non-value-added costs are all measures of performance for the cell process. Discuss the incentives provided by these measures.Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows. Includes depreciation. The density gauge uses a subassembly that is purchased from an external supplier for 25 per unit. Each quarter, 2,000 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows: No significant non-unit-level costs are incurred. Morrill is considering two alternatives to supply the productive capacity for the subassembly. 1. Lease the needed space and equipment at a cost of 27,000 per quarter for the space and 10,000 per quarter for a supervisor. There are no other fixed expenses. 2. Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be 38,000, 8,000 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected. Required: 1. Should Morrill Company make or buy the subassembly? If it makes the subassembly, which alternative should be chosen? Explain and provide supporting computations. 2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What effect does this have on the decision? 3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 2,800 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
- Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste container is the same. The number of waste containers that Jonfran will need during the following years is estimated as follows: The equipment used to manufacture the waste container must be replaced because it is broken and cannot be repaired. The new equipment would have a purchase price of 945,000 with terms of 2/10, n/30; the companys policy is to take all purchase discounts. The freight on the equipment would be 11,000, and installation costs would total 22,900. The equipment would be purchased in December 20x4 and placed into service on January 1, 20x5. It would have a five-year economic life and would be treated as three-year property under MACRS. This equipment is expected to have a salvage value of 12,000 at the end of its economic life in 20x9. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in both direct materials and variable overhead. The savings in direct materials would result in an additional one-time decrease in working capital requirements of 2,500, resulting from a reduction in direct material inventories. This working capital reduction would be recognized at the time of equipment acquisition. The old equipment is fully depreciated and is not included in the fixed overhead. The old equipment from the plant can be sold for a salvage amount of 1,500. Rather than replace the equipment, one of Jonfrans production managers has suggested that the waste containers be purchased. One supplier has quoted a price of 27 per container. This price is 8 less than Jonfrans current manufacturing cost, which is as follows: Jonfran uses a plantwide fixed overhead rate in its operations. If the waste containers are purchased outside, the salary and benefits of one supervisor, included in fixed overhead at 45,000, would be eliminated. There would be no other changes in the other cash and noncash items included in fixed overhead except depreciation on the new equipment. Jonfran is subject to a 40 percent tax rate. Management assumes that all cash flows occur at the end of the year and uses a 12 percent after-tax discount rate. Required: 1. Prepare a schedule of cash flows for the make alternative. Calculate the NPV of the make alternative. 2. Prepare a schedule of cash flows for the buy alternative. Calculate the NPV of the buy alternative. 3. Which should Jonfran domake or buy the containers? What qualitative factors should be considered? (CMA adapted)Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of 1,350 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of 900 per unit. a. If a transfer price of 1,000 per unit is established and 75,000 units of materials are transferred, with no reduction in the Components Divisions current sales, how much would Ziegler Inc.s total operating income increase? b. How much would the Instrument Divisions operating income increase? c. How much would the Components Divisions operating income increase?Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
- Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $450,000 in the production of 20,000 gallons of W and 50,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: Separable processing costs Sales price (per gallon) if processed beyond split-off The joint cost allocated to W under the net-realizable-value method would be: (Do not round intermediate calculations.) Multiple Choice $156,000. $142,105, $110,000 $128.571. $40,000 $ 15 $ $160,000 13Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $90,000 in the production of 20,000 gallons of P and 50,000 gallons of Q. Kingston can sell P and Q at split-off for $2.00 per gallon and $2.20 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows: P Q Separable processing costs $ 22,000 $ 42,000 Sales price (per gallon) if processed beyond split-off $ 4 $ 6 what woulkd be the joint cost allocated to Q under the relative-sales-value method ? Note: Do not round intermediate calculations.Jorioz Co makes joint products X and Y. $120,000 joint processing costs are incurred. At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with selling prices of $1.20 for X and $1.50 for Y. The units of X could be processed further to make 8,000 units of product Z. The extra costs incurred in this process would be fixed costs of $1,600 and variable costs of $0.50 per unit of input. The selling price of Z would be $2.25. What would be the outcome if product X is further processed? O $600 loss $400 gain O $3,900 gain O $1,600 loss