Solution-What is the approximate amount of joint costs in

What is the approximate amount of joint costs in drabs

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Reference no: EM132594344

R&R Manufacturing Company processes raw material up to the split off point, where two products (Dibs and Drabs) are obtained and sold. The following information was collected for the month of July.

Raw material processed: 10,000 kilograms yielding 9,500 kilograms of good product and 500 kilograms of shrinkage.

Production:

Dibs 5,000 kilograms

Drabs 4,500 kilograms

Sales:

Dibs 4,750 at $150 per kilogram

Drabs 4,000 at $100 per kilogram

The cost of purchasing 10,000 kilograms of direct materials and processing it up to the split off point to yield a total of 9,500 kilograms of good products was $975,000.
The beginning inventories totaled 50 kilograms for Dibs and 25 kilograms for Drabs. Ending inventory amounts reflected 300 kilograms of Dibs and 525 kilograms of Drabs. June costs per unit were the same as July.

Question 1: What is the approximate amount of joint costs in Drabs' ending inventory if the physical volume method is used and the company uses the FIFO inventory method?

Reference no: EM132594344

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What is the approximate amount of joint costs in drabs

Reference no: EM132594344

Reference no: EM132594344

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