CostExercise16y

CostExercise16y - Ahmed Souary 16-20 Alternative methods of...

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

View Full Document Right Arrow Icon
Ahmed Souary 16-20 Alternative methods of joint-cost allocation, ending inventories. Total production for the year was: Ending Total Sold Inventories Production X 120 180 300 Y 340 60 400 Z 475 25 500 A diagram of the situation is in Solution Exhibit 16-20. 1. a. Net realizable value (NRV) method: X Y Z Total Final sales value of total production, 300 × $1,500; 400 × $1,000; 500 × $700 $450,000 $400,000 $350,000 $1,200,000 Deduct separable costs –– –– 200,000 200,000 Net realizable value at splitoff point $450,000 $400,000 $150,000 $1,000,000 Weighting, $450; $400; $150 o $1,000 0.45 0.40 0.15 Joint costs allocated, 0.45, 0.40, 0.15 × $400,000 $180,000 $160,000 $ 60,000 $ 400,000 Ending Inventory Percentages: X Y Z Ending inventory 180 60 25 Total production 300 400 500 Ending inventory percentage 60% 15% 5% Income Statement X Y Z Total Revenues, 120 × $1,500; 340 × $1,000; 475 × $700 $180,000 $340,000 $332,500 $852,500 Cost of goods sold: Joint costs allocated 180,000 160,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

CostExercise16y - Ahmed Souary 16-20 Alternative methods of...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online