Question :
21) When using a physical-volume measure, what the approximate amount : 1211878
21) When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim?
A) $1,386,804 and $893,196
B) $1,140,000 and $1,140,000
C) $1,368,000 and $912,000
D) $1,254,00 and $1,026,000
22) When using the physical-volume method, what is Cream’s approximate production cost per gallon?
A) $3.03
B) $3.31
C) $3.13
D) $3.21
23) Which of the following statements about Alfarm’s joint production costs is true?
A) The gross-margin percentage per gallon of Cream and Liquid skim are equal because joint costs are allocated based on the number of gallons.
B) The gross-margin percentage per gallon of Cream is higher than gross margin percentage per gallon of Liquid skim because of Cream’s higher production volume.
C) The joint production cost per gallon of Cream and Liquid skim are equal because joint costs are allocated based on the number of gallons.
D) The joint production cost per gallon of Cream is higher than joint production cost per gallon of Liquid skim because of Cream’s higher production volume.
Answer the following questions using the information below:
Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year:
Direct materials processed:200 kgs (Both standard and premium chips weigh 10 grams each)
Production:Standard10,000 chips
Premium6,500 chips
Sales:Standard9,500 at $100 per chip
Premium6,000 at $170 per chip
The cost of purchasing 200 kgs of direct materials and processing it up to the splitoff point to yield a total of 16,500 chips of good products was $1,950,000.
Beginning inventories totalled 100 chips for Standard and 50 chips for Premium. Ending inventory amounts reflected 100 chips of Standard and 50 chips of Premium. October costs per unit were the same as November.
24) What are the physical-volume proportions for products Standard and Premium, respectively?
A) 60.00% and 40.00%
B) 55.00% and 45.00%
C) 60.61% and 39.39%
D) 54.00% and 46.00%
25) When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Standard chips?
A) $1,170,000
B) $1,818,818
C) $975,000
D) $1,181,818
26) When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Premium chips?
A) $768,182
B) $1,170,000
C) $975,000
D) $780,000
Answer the following questions using the information below:
The Green Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October:
Direct Materials processed:98,000 gallons (after shrinkage)
Production:Condensed goat milk42,500 gallons
Skim goat milk55,500 gallons
Sales:Condensed goat milk$3.50 per gallon
Skim goat milk$2.50 per gallon
The costs of purchasing the of unprocessed goat milk and processing it up to the splitoff point to yield a total of 98,000 gallons of saleable product was $184,480. There were no inventory balances of either product.
Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $4 per usable gallon. Xyla can be sold for $20 per gallon.
Skim goat milk can be processed further to yield 54,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $4. The product can be sold for $9 per gallon.
There are no beginning and ending inventory balances.
27) What is the estimated net realizable value of Xyla at the splitoff point?
A) $271,000
B) $287,400
C) $672,000
D) $712,600
28) What is the estimated net realizable value of the skim goat ice cream at the splitoff point?
A) $271,000
B) $287,400
C) $672,000
D) $712,600
29) Using estimated net realizable value, what amount of the joint costs would be allocated Xyla and the skim goat ice cream?
A) $672,000 and $271,000
B) $131,464 and $53,016
C) $92,240 and $92,240
D) $144,480 and $72,140
30) Using the sales value at splitoff method, what is the gross-margin percentage for condensed goat milk at the splitoff point?
A) 51.74%
B) 50.00%
C) 35.83%
D) 48.26%
