Hi, I have attached a picture of an accounting problem that is...

Hi,

I have attached a picture of an accounting problem that is solved but I do not understand and how to do the part b. Could you please help me with it? Thank you!

Image transcription text

AutoSave ( OFF *Exam2CostSp2020Post Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 A* General Conditional Formatting v Insert v Ex Delete v Paste Format as Table v BIU VA $ ~ % " Cell Styles v Format X v Sort & Find & Ideas Sensitivity Filter Select Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates F28 X V fx A B C D E F G H I J K L M N 0 P Q R WN H 4. Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling price data follow: Production in Ultimate Selling Price | Cost after Split- Product pound per pound off Chops 100,000 $5.00 6 Bacon 210,000 $4.00 $100,000 Sausage 410,000 $2.00 $60,000 Joint costs 1,500,000 Hogs are processed in the Processing Department. From the split-off point, bacon is smoked, sliced and packaged in the Bacon Department. The cost incurred for these processes was $100,000. In addition, sausage was ground and formed into patties in the Sausage Department after the split-off. This process cost $60,000. 10 11 12 Required: 13 a) If joint processing costs were $1,500,000, calculate the total cost of each product using the sales value at split-off method. b) Prepare the journal entries to 1) record the joint processing and movement of product out of the Processing Department after the split off, and 2) record the additional processing and completion of the bacon and sausage. 14 15 16 Product Units Produced Price Ultimate / bbl. Sales Value Costs After Split-off Net Realizable Value Percentage Joint Costs Assigned* 17 18 Chops 100,000 $5.00 $500,000 $500,000 25.00% $375,000 19 Bacon 210,000 $4.00 840,000 $100,000 $740,000 37.00% $555,000 20 Sausage 410,000 $2.00 $820,000 $60,000 $760,000 38.00% $570,000 21 Total $2.160.000 $160.000 $2.000,000 100.00% $1,500,000 22 23 Item Account Debit Credit 24 25 26 Multiple Choice Ans Sheet 2 3 5 6 7 8 + Ready + 100%

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