Alternative joint-cost-allocation methods further-process

Assignment Help Accounting Basics

Reference no: EM13609010

Alternative joint-cost-allocation methods, further-process decision. The Wood SpiritsCompany produces two products-turpentine and methanol (wood alcohol)-by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processingcosts are methanol, $3per gallon; turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14 per gallon.

1. How much of the joint costs per batch will be allocated to turpentine and to methanol, assuming that joint costs are allocated based on the number of gallons at splitoff point?

2. If joint costs are allocated on an NRV basis, how much of the joint costs will be allocated to turpentine and to methanol?

Reference no: EM13609010

Questions Cloud

Find the maximum height h we can have if the environmental : water is syphoned from the container to a lower place. the flexible hose has a constant diameter and the location

Jonas lumber company owns a 16660-acre tract of timber : jonas lumber company owns a 16660-acre tract of timber purchased in 2005 at a cost of 3094 per acre. at the time of

A company had the following results last year sales 700000 : a company had the following results last year sales 700000 return on investment 28 and margin 8. the average operating

A pellet gun is fired straight downward from the edge of a : a pellet gun is fired straight downward from the edge of a cliff that is 12.2 m above the ground. the pellet strikes

Alternative joint-cost-allocation methods further-process : alternative joint-cost-allocation methods further-process decision. the wood spiritscompany produces two

Compute the astm grain size number for this alloy be : a photomicrograph was taken at a magnification of 500x and it was determined that the average number of grains per

X company uses a fifo inventory system the actual cost of : x company uses a fifo inventory system. the actual cost of direct materials and direct labor is used to value labor and

A dynamite blast at a quarry launches a rock straight : a dynamite blast at a quarry launches a rock straight upward and 2.3 s later it is rising at a rate of 14 ms. assuming

Koko company produces lamps that require 225 standard : koko company produces lamps that require 2.25 standard hours per unit at an hourly rate of 15 per hour. if 7700 units

User Account

All Pages