E16-25 (similar to) The Yameen Company operates a simple chemical process to con

Question

E16-25 (similar to) The Yameen Company operates a simple chemical process to convert a single material into three separate items, referred to During 2017, the se here as X Y, and Z All three end products are separated simultaneously at a single splitoff point (Click the icon t (Click the icon for additional information) Requirement 1. Compute the cost of inventories of X, Y and Z for balance sheet purposes and the cost of goods sold for income statement purposes (a) Start with the NRV cost allocation method. Begin by computing the net realizable value for total production at the point of splitoff and the weighting Net realizable value of total production at spítoff 11 Read the requireme Total Weighting Enter anvinumber in the edit fields and then click Check Ansmer Clear All 13 pitainng

Explanation / Answer

Net realizable Value of products and Allocation of Joint cost X Y Z Total Sales value 480000 360000 360000 1200000 Less: Further processing cost 200000 200000 Net realizable value 480000 360000 160000 1000000 Weighting 48.00% 36.00% 16% Allocation of Joint cost 168960 126,720 56320 352000 (Total Joint cost*Weighting) Total cost of Production: Allocation of Joint cost 168960 126720 56320 352000 Further processing cost 200000 200000 Total cost of Production: 168960 126720 256320 552000 Divide: Units Produced 400 400 600 (Sold units+Ending inventory units) Cost perr unit 422.4 316.8 427.2 Cost of Goods sold 42240 88704 230688 361632 (Soldd units*Cost per unit) Ending inventory 126720 38016 25632 190368 (ending inventory Units*Cost per unit)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.