costexcel16

costexcel16 - 16-18 Net realizable value method. Ahmed...

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Unformatted text preview: 16-18 Net realizable value method. Ahmed Souary Corn Syrup Corn Starch Joint Costs $325,000 $375,000 $93,750 0 0 12,500 6,250 0 0 $50 $25 Joint costs (costs of processing corn to splitoff point) Separable cost of processing beyond splitoff point Beginning inventory (cases) Production and Sales (cases) Ending inventory (cases) Selling price per case Corn Syrup Corn Starch Joint Costs Final sales value of total production, 12,500*$50.00 and 6,250*$25.00 Minus separate Costs Net realizable value at spinoff point Weighting, $250,000 and $62,500 / $312,500 Joint costs allocated 0.8 and 0.2 * $325,00 $625,000 $375,000 $250,000 0.8 $260,000 $156,250 $93,750 $62,500 0.2 $65,000 $781,250 $468,750 $312,500 $325,000 Joint Costs Separable Costs Processing $375,000 Processing $325,000 Processing $93,750 Splitoff Point Corn Syrup: 12,500 cases at $50 per case Corn Starch: 6,250 cases at $25 per case ...
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This note was uploaded on 06/23/2011 for the course BUS 2B taught by Professor Hayle during the Spring '11 term at El Camino.

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costexcel16 - 16-18 Net realizable value method. Ahmed...

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