Question :
11) If the sales value at splitoff method used, what : 1217014
11) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper?
A) $28.58
B) $100.00
C) $870.00
D) $1,500.00
12) If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing?
A) $0.0250
B) $0.0255
C) $0.0335
D) $0.0357
13) Yakima Manufacturing purchases trees from Cheney Lumber and processes them up to the splitoff point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of May:
Trees processed:100 trees (yield is 70,000 sheets of paper and 60,000 pencil casings and no scrap)
Production:paper70,000 sheets
pencil casings60,000
Sales:paper68,000 at $0.04 per page
pencil casings60,000 at $0.10 per casing
The cost of purchasing 100 trees and processing them up to the splitoff point to yield 70,000 sheets of paper and 60,000 pencil casings is $3,000.
Yakima’s Manufacturing’s accounting department reported no beginning inventories and an ending inventory of 2,000 sheets of paper.
What are the paper’s and the pencils’ approximate weighted cost proportions using the sales value at splitoff method, respectively?
A) 50.00% and 50.00%
B) 33.33% and 66.67%
C) 31.82% and 68.18%
D) None of these answers is correct.
14) The Arvid Corporation manufactures widgets, gizmos, and turnbols from a joint process. May production is 2,000 widgets; 3,500 gizmos; and 4,000 turnbols. Respective per unit selling prices at splitoff are $30, $20, and $10. Joint costs up to the splitoff point are $75,000. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets?
A) $30,882
B) $26,471
C) $17,647
D) $28,125
15) Product X is sold for $32 a unit and Product Y is sold for $48 a unit. Each product can also be sold at the splitoff point. Product X can be sold for $10 and Product Y for $8. Joint costs for the two products totaled $2,000 for January for 300 units of X and 250 units of Y. What are the respective joint costs assigned each unit of products X and Y if the sales value at splitoff method is used?
A) $2.96 and $4.44
B) $4.00 and $4.55
C) $4.00 and $3.20
D) $4.55 and $4.55
16) A reason why a physical-measure to allocate joint costs is less preferred than the sales value at splitoff is:
A) a physical measure such as volume is difficult to estimate because of shrinkage
B) physical volume usually has little relationship to the revenue producing power of products
C) a physical measure usually results in the costs being allocated to the product that weighs the most
D) All of these answers are correct.
Answer the following questions using the information below:
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
Direct materials processed:250,000 gallons (242,500 gallons of good product)
Production:Mr. DirtOut147,500 gallons
Mr. SinkClean95,000 gallons
Sales:Mr. DirtOut140,500 at $110 per gallon
Mr. SinkClean91,000 at $ 100 per gallon
The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $760,000.
17) What are the physical-volume proportions to allocate joint costs for Mr. DirtOut and Mr. SinkClean, respectively?
A) 59.00% and 41.00%
B) 60.82% and 39.18%
C) 39.18% and 60.82%
D) 59.79% and 40.21%
18) When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?
A) $464,232 and $297,768
B) $448,400 and $311,600
C) $454,404 and $305,596
D) $461,252 and $298,748
19) When using the physical-volume method, what is Mr. DirtOut’s approximate production cost per unit?
A) $3.02
B) $3.08
C) $3.14
D) $3.22
20) Argon Manufacturing Company processes direct materials up to the splitoff point where two products (U and V) are obtained and sold. The following information was collected for last quarter of the calendar year:
Direct materials processed:20,000 gallons (20,000 gallons yield 19,000 gallons of good product and 1,000 gallons of shrinkage)
Production:U10,000 gallons
V9,000 gallons
Sales:U9,500 at $150 per gallon
V8,000 at $100 per gallon
The cost of purchasing 20,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 19,000 gallons of good products was $1,950,000.
Beginning inventories totaled 100 gallons for U and 50 gallons for V. Ending inventory amounts reflected 600 gallons of Product U and 1,050 gallons of Product V. October costs per unit were the same as November.
What are the physical-volume proportions for products U and V, respectively?
A) 47.37% and 53.63%
B) 55.00% and 45.00%
C) 52.63% and 47.37%
D) 54.00% and 46.00%
