Problem 16-26 - 16-221a.PANEL A: Allocation of Joint Costs...

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Unformatted text preview: 16-221a.PANEL A: Allocation of Joint Costs using Sales Value atSplitoff MethodSpecial B/Beef RamenSpecial S/ Shrimp RamenTotalSales value of total production at splitoff point(10,000 tons $10 per ton; 20,000 $15 per ton)$100,000$300,000$400,000Weighting ($100,000; $300,000 $400,000)0.250.75Joint costs allocated (0.25; 0.75 $240,000)$60,000$180,000$240,000PANEL B: Product-Line Income Statement for June 2009Special BSpecial STotalRevenues(12,000 tons $18 per ton; 24,000 $25 per ton)$216,000$600,000$816,000Deduct joint costs allocated (from Panel A)60,000180,000240,000Deduct separable costs48,000168,000216,000Gross margin$108,000$252,000$360,000Gross margin percentage50%42%44%1b.PANEL A: Allocation of Joint Costs using Physical-MeasureMethodSpecial B/Beef RamenSpecial S/ Shrimp RamenTotalPhysical measure of total production (tons)10,00020,00030,000Weighting (10,000 tons; 20,000 tons 30,000 tons)33%67%Joint costs allocated (0.33; 0.67 $240,000)$80,000$160,000$240,000PANEL B: Product-Line Income Statement for June 2009Special BSpecial STotalRevenues(12,000 tons $18 per ton; 24,000 $25 per ton)$216,000$600,000$816,000Deduct joint costs allocated (from Panel A)80,000160,000240,000Deduct separable costs48,000168,000216,000Gross margin$ 88,000$272,000$360,000Gross margin percentage41%45%44%1c.PANEL A: Allocation of Joint Costs using Net RealizableValue MethodSpecial BSpecial STotalFinal sales value of total production during accounting period(12,000 tons $18 per ton; 24,000 tons $25 per ton)$216,000$600,000$816,000Deduct separable costs48,000168,000216,000Net realizable value at splitoff point$168,000$432,000$600,000Weighting ($168,000; $432,000 $600,000)28%72%Joint costs allocated (0.28; 0.72 $240,000)$67,200$172,800$240,000PANEL B: Product-Line Income Statement for June 2009Special BSpecial STotalRevenues (12,000 tons...
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This note was uploaded on 04/01/2011 for the course ACCT 315 taught by Professor Siebert during the Winter '09 term at Saginaw Valley.

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Problem 16-26 - 16-221a.PANEL A: Allocation of Joint Costs...

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