Requirements1.2.3.4.- XHow much of the joint costs per batch will be allocated to methanol andto turpentine, assuming that joint costs are allocated based on the number ofgallons at splitoff point?If joint costs are allocated on an NRV basis, how much of the joint costs perbatch will be allocated to methanol and to turpentine?Prepare product-line income statements per batch for requirement 1 and 2.Assume no beginning or ending inventories.The company has discovered an additional process by which themethanol (wood alcohol) can be made into a pleasant-tasting alcoholicbeverage. The selling price of this beverage would be $60 a gallon. Additionalprocessing would increase separable costs $9 per gallon (in addition to the$3 per gallon separable cost required to yield methanol). The company wouldhave to pay excise taxes of 20% on the selling price of the beverage.Assuming no other changes in cost, what is the joint cost applicable to thewood alcohol (using the NRV method)? Should the company produce thealcoholic beverage? Show your computations.more processing costsallon. Turpentine semto turpentine, aseights to five decimCheck The Rouse Spirits Company produces two products-methanol (wood alcohol) and turpentine-by a joint process.Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75%turpentine. Both products are processed further without gain or loss in volume. Separable processing costsare methanol, $3 per gallon, and turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14per gallon.Read the requirements.Requirement 1. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming thatjoint costs are allocated based on the number of gallons at splitoff point? (Round the weights to five decimal places.)MethanolTurpentineTotalPhysical measure of total productionWeightingJoint costs allocated

Note : Joint costs are apportioned over joint product by applying any of the following methods : (a)…

The Rouse Spirits Company produces two products-methanol (wood alcohol) and turpentine-by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $3 per gallon, and turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14 per gallon.. Read the requirements. www Requirement 1. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming that joint costs are allocated based on the number of gallons at splitoff point? (Round the weights to five decimal places.) Methanol Turpentine Total Physical measure of total production Weighting Joint costs allocated

The Rouse Spirits Company produces two products-methanol (wood alcohol) and turpentine-by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $3 per gallon, and turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14 per gallon.. Read the requirements. www Requirement 1. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming that joint costs are allocated based on the number of gallons at splitoff point? (Round the weights to five decimal places.) Methanol Turpentine Total Physical measure of total production Weighting Joint costs allocated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—by a joint process. Joint costs amount to $124,000 per batch of output. Each batch totals 9,500 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $4 per gallon, and turpentine, $2 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon. Q. If joint costs are allocated on an NRV basis, how much of the joint costs will be allocated to methanol and to turpentine?
The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—by a joint process. Joint costs amount to $124,000 per batch of output. Each batch totals 9,500 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $4 per gallon, and turpentine, $2 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon. Q. The company has discovered an additional process by which the methanol (wood alcohol) can be made into a pleasant-tasting alcoholic beverage. The selling price of this beverage would be $55 a gallon. Additional processing would increase separable costs $12 per gallon (in addition to the $4 per gallon separable cost required to yield methanol). The company would have to pay excise taxes of 20% on the selling price of the beverage. Assuming no other changes in cost, what is the joint cost applicable to the wood alcohol (using the NRV…
The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—by a joint process. Joint costs amount to $124,000 per batch of output. Each batch totals 9,500 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $4 per gallon, and turpentine, $2 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon. Q. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming that joint costs are allocated based on the number of gallons at splitoff point?
The RieppelSpirits Company produces two products—methanol (wood alcohol) and turpentine—by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $3 per gallon, and turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14 per gallon. Read the requirements1. Requirement 1. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming that joint costs are allocated based on the number of gallons at splitoff point? (Round the weights to five decimal places.) Methanol Turpentine Total Physical measure of total production Weighting Joint costs allocated Requirement 2. If joint costs are allocated on an NRV basis, how much of the joint…
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