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Black Corporation processes xyrex into three outputs: Xy-1, Xy-2, and Xy-3. Xy-1

ID: 2461385 • Letter: B

Question

Black Corporation processes xyrex into three outputs: Xy-1, Xy-2, and Xy-3. Xy-1 accounts for 59 percent of the net realizable value at the split-off point, Xy-2 accounts for 31 percent, and Xy-3 accounts for the balance. The joint costs total $215,000. If Xy-3 is accounted for as a by-product, its $19,000 net realizable value at split-off is credited to the joint manufacturing costs using method 1 described in the text, which credits the by-product's net realizable value as a reduction in the joint costs.

If Xy-3 is accounted for as a joint product?

If Xy-3 is accounted for as a by-product? (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Black Corporation processes xyrex into three outputs: Xy-1, Xy-2, and Xy-3. Xy-1 accounts for 59 percent of the net realizable value at the split-off point, Xy-2 accounts for 31 percent, and Xy-3 accounts for the balance. The joint costs total $215,000. If Xy-3 is accounted for as a by-product, its $19,000 net realizable value at split-off is credited to the joint manufacturing costs using method 1 described in the text, which credits the by-product's net realizable value as a reduction in the joint costs.

Explanation / Answer

1) Xy-1 $ 126,850 215000*59% Xy-2 $    66,650 215000*31% Xy-3 $    21,500 215000*10% 2) Xy-1 $ 128,489 (215000-19000)*59/(59+31) Xy-2 $    67,511 (215000-19000)*31/(59+31) Xy-3 $             -   $                                                    -