Quiz 3 Solution

# Quiz 3 Solution - WIP Department 3 96,600 FG Alpha 194,759...

This preview shows pages 1–2. Sign up to view the full content.

1 ACCT 310 – Quiz 3 Solution Fall 2008 1. June’s joint product costs Direct material, Department 1 \$ 95,000 Direct labor, Department 1 40,000 Applied overhead, Department 1 (.70 * \$40,000) 28,000 Direct material, Department 2 40,000 Direct labor, Department 2 80,000 Applied overhead, Department 2 (1.20 * \$80,000) 96,000 Total June joint product costs \$ 379,000 2. Approximated net realizable value of joint products at split-off NRV of Beta: (\$6 * 50,000) - [\$10,000 + \$20,000 + (1.10 * \$20,000)] \$248 ,000 NRV of Alpha: (\$5 * 100,000) 500,000 NRV of Psi: (\$3 * 75,000) 225,000 Total NRV of joint products \$ 973,000 3. Joint product cost allocation schedule To Beta: (\$248,000/\$973,000) * \$379,000 \$ 96,600 To Alpha: (\$500,000/\$973,000) * \$379,000 194,759 To Psi: (\$225,000/\$973,000) * \$379,000 87,641 Total joint product costs \$ 379,000 4. Journal entry related to allocation of June’s joint product costs

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: WIP - Department 3 96,600 FG - Alpha 194,759 FG - Psi 87,641 WIP - Department 2 379,000 2 5. Total gross profit from sales of Beta during June Joint product costs allocated to Beta \$ 96,600 Dept. 3 direct material - Beta 10,000 Dept. 3 direct labor - Beta 20,000 Dept. 3 applied overhead - Beta (1.10 * \$20,000) 22,000 Total production costs - Beta \$ 148,600 Unit production cost - Beta (\$148,600/50,000) \$ 2.972 Sales (\$6.00 * 15,000) \$ 90,000 Cost of goods sold (\$2.972 * 15,000) (44,580) Gross profit \$ 45,420 6. Balance of finished goods inventory of Alpha on June 30 Joint product costs allocated to Alpha (= total production costs) \$ 194,759 Unit production cost - Alpha (\$194,759/100,000) \$ 1.948 June 30 finished goods inventory - Alpha (\$1.948 * 35,000) \$ 68,180...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

Quiz 3 Solution - WIP Department 3 96,600 FG Alpha 194,759...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online