{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Acct306 Homework Ch16

# Acct306 Homework Ch16 - CHAPTER 16 COST ALLOCATION JOINT...

This preview shows pages 1–3. Sign up to view the full content.

16-1 CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-32 Joint-cost allocation with a byproduct. 1. Sales value at splitoff method: Byproduct recognized at time of production method Floor Mats Car Mats Rubber Shreds (lbs) Products manufactured 31,250 a 93,750 b 50,000 c Products sold 25,000 85,000 43,000 Ending inventory 6,250 8,750 7,000 a 25 floor mats/100 tires = .25 floor mats per tire × 125,000 tires = 31,250 floor mats b 75 car mats/100 tires = .75 car mats per tire × 125,000 tires = 93,750 car mats c (125,000 tires/100) × 40 lbs = 50,000 lbs rubber shreds Joint cost to be charged to joint products = Joint Cost – NRV of Byproduct = \$600,000 – (50,000 lbs × 0.70 per lb) = \$600,000 – \$35,000 = \$565,000 Floor Mats Car Mats Total Sales value of mats at splitoff, 31,250 × \$12; 93,750 × \$6 \$375,000 \$562,500 \$937,500 Weighting, \$375,000; \$562,500 ÷ \$937,500 0.40 0.60 Joint costs allocated, 0.40; 0.60 × \$565,000 \$226,000 \$339,000 \$565,000 Floor Mats Car Mats Total Revenues, 25,000 × \$12; 85,000 × \$6 \$300,000 \$510,000 \$810,000 Cost of goods sold Joint costs allocated, 0.40; 0.60 × \$565,000 226,000 339,000 565,000 Less: Ending inventory (45,200) b (31,640) c (76,840) Cost of goods sold 180,800 307,360 488,160 Gross margin \$119,200 \$202,640 \$321,840 b 6,250 × \$226,000/31,250 = \$45,200 c 8,750 × \$339,000/93,750 = \$31,640

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

View Full Document
16-2 2. Sales value at splitoff method: Byproduct recognized at time of sale method Joint cost to be charged to joint products = Joint Cost = \$600,000 Floor Mats Car Mats Total Sales value of mats at splitoff, 31,250 × \$12; 93,750 × \$6 \$375,000 \$562,500 \$937,500 Weighting, \$375,000; \$562,500 ÷ \$937,500 0.40 0.60 Joint costs allocated, 0.40; 0.60 × \$600,000 \$240,000 \$360,000 \$600,000 Floor Mats Car Mats Rubber Shreds Total Revenues, 25,000 × \$12; 85,000 × \$6 \$300,000 \$510,000 \$30,100 d \$840,100 Cost of goods sold Joint costs allocated, 0.40; 0.60 × \$600,000 240,000 360,000 600,000 Less: Ending inventory (48,000) e (33,600) f (81,600) Cost of goods sold 192,000 326,400 518,400 Gross margin \$108,000 \$183,600 \$30,100 \$321,700 d 43,000 lbs × \$0.70 per lb. = \$30,100 e
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}