Batch of standard chips is converted into standard memory

Assignment Help Cost Accounting
Reference no: EM13771984

Joint Cost Allocation. Memory Manufacturing Company (MMC) produces memory modules in a two-step process: chip fabrication and module assembly.
In chip fabrication, each batch of raw silicon wafers yields 500 standard chips and 500 deluxe chips. Chips are classified as standard or deluxe on the basis of their density (the number of memory bits on each chip). Standard chips have 500 memory bits per chip, and deluxe chips have 1,000 memory bits per chip.
Joint costs to process each batch are $24,000.
In module assembly, each batch of standard chips is converted into standard memory modules at a separately identified cost of $1,000 and then sold for $8,500. Each batch of deluxe chips is converted into deluxe memory modules at a separately identified cost of $1,500 and then sold for $25,000.
1. Allocate joint costs of each batch to deluxe modules and standard modules using (a) the NRV method, (b) the constant gross-margin percentage NRV method, and (c) the physical-measure method, based on the number of memory bits. Which method should MMC use?
2. MMC can process each batch of 500 standard memory modules to yield 400 DRAM modules at an additional cost of $1,600. The selling price per DRAM module would be $26. Assume MMC uses the physical-measure method. Should MMC sell the standard memory modules or the DRAM modules? 

Reference no: EM13771984

Questions Cloud

London-based producer of a patented anti-microbial dental : Howorth Dental Products is a London-based producer of a patented anti-microbial dental floss. All raw material is introduced at the beginning of the production process, but considerable processing time is needed to create the anti-microbial qualities..
General principles for design of warning labels : Select a warning label. Evaluate it with respect to general principles for design of warning labels. How could you improve the design?
Research aspects of biology : Discuss how or if the scientific knowledge about the topic covered in the article affects you directly or indirectly.
What prices will the monopolist set when she can discriminat : A movie monopolist sells to college students and other adults. The demand function for students is Qds=2000-25P, and the demand function for other adults is Qds=2400-25P. Marginal cost is $6 per ticket. Instructions:Round your answers to 2 decimal pl..
Batch of standard chips is converted into standard memory : In module assembly, each batch of standard chips is converted into standard memory modules at a separately identified cost of $1,000 and then sold for $8,500. Each batch of deluxe chips is converted into deluxe memory modules at a separately identifi..
Control or display in your environment : Select a control or display in your environment. Describe and evaluate it with respect to general guidelines for controls or displays. Should it be redesigned.
Current issue of consumer reports : Choose a current issue of consumer reports, money, BusinessWeek, or Kiplinger's Personal Finance and summarize an article that updates the costs of health care. How might you use this information to reduce your health care cost?
The sales and costs of producing the jigsaws : Playtime Ltd produces jigsaws for sale in model shops. The following information relates to the sales and costs of producing the jigsaws.Selling price per unit is £20Variable cost per unit is £10
Inheritance and output formatting : Inheritance and Output Formatting, finish the implementation of class name and derived classes person and employee in the following code. Format the output neatly using setw() and or other setioflags features

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Make adjustments for intra-group transactions

Advise the directors of Beda Ltd of the requirements of AASB 127 in respect of the control criterion and how they would apply to this investment.

  Direct method of presentation

Direct method of presentation, prepare the cash flows from the operating activities section of the Statement of cash flows for the year ended 30 September 20X9.

  The following applies to the dunbar corp for

the following applies to the dunbar corp for 2008transactions in common

  Departments cost reconciliation report for november

The company uses the FIFO method in its process costing system. In the departments cost reconciliation report for November, the total cost to be accounted for would be:

  Determine the predetermined overhead rate for november

Gokey Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.10 per direct labor-hour.

  Prepare a t account for the accounts payable

Prepare a T account for the accounts payable creditor accounts and post the transactions from the purchases journal to the creditor accounts, and determine their ending balances.

  Compute unit contribution margin and margin ration

Compute the unit contribution margin and contribution margin ratio - what is the sales revenue required to achieve target profit of $5,000?

  Calculate the amount each person would pay

Calculate the amount each person would pay and calculate the amount that each person would pay based on his own consumption of the activity.

  The city of shipley maintains an employee retirement fund a

the city of shipley maintains an employee retirement fund a single-employer defined benefit plan that provides annuity

  Match each situation with fraud triangle factor opportunity

match each situation with fraud triangle factor opportunity rationalization or financial pressure that best explain

  Determine the number of equivalent units of production

Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories.

  Compute the budgeted dollar amount of inventory

Compute the amount of cash, in total, which the company can expect to collect in May and compute the budgeted dollar amount of inventory which the company should have on hand at the end of April.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd