Black Corporation processes xyrex into three outputs: Xy-1, Xy-2, and Xy-3. Xy-1
ID: 2463531 • 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
If Xy-3 is accounted for as a joint product:
If Xy-3 is accounted for as a by-product: Total joint cost = 215000 - 19000 = $196000
(a) The allocated joint costs for the three outputs are:Related Questions
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