Acct306 Homework Ch16

Acct306 Homework Ch16 - 16-1 CHAPTER 16 COST ALLOCATION:...

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Unformatted text preview: 16-1 CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS16-32 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 31,250a 93,750b50,000cProducts sold 25,000 85,000 43,000 Ending inventory 6,250 8,750 7,000 a25 floor mats/100 tires = .25 floor mats per tire 125,000 tires = 31,250 floor mats b75 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 b6,250 $226,000/31,250 = $45,200 c8,750 $339,000/93,750 = $31,640 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...
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Acct306 Homework Ch16 - 16-1 CHAPTER 16 COST ALLOCATION:...

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