The following questions relate to Kyle Company, which manufactures products KA,

Question

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $124,000. Additional information foliows If Processed Further Units Sales Value Sales Additional Product Produced at Split-Off Values KA KB KC Costs 60,000 $130,000 $220,000 $35,000 37,000 180,000 200,000 30 000 18,000 100,000 120,000 17,000 Required: (a) Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including S35 000 if processed further)? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) Tolal cost of product KA

Explanation / Answer

a) Total Product cost of KA (Units produced method) Particulars Amount Allocated Joint Product cost 64696 Further cost 35000 Total Cost 99696 Basis of allocation ( Units produced method) Particulars Units Produced Product KA 60000 Product KB 37000 Product KC 18000 Total (A) 115000 Total Joint Product Cost (B) 124000 Joint product cost per unit ( B /A) 1.08 Cost for product KA ( 60000 units X 1.08) 64696 b) Total Product cost of KB ( net realizable value method) Particulars Amount Allocated Joint Product cost 54439 Further cost 30000 Total Cost 84439 Basis of allocation ( net realizable value method) Particulars Sale Value Product KA 130000 Product KB 180000 Product KC 100000 Total (A) 410000 Total Joint Product Cost (B) 124000 Joint product cost per $ ( B /A) 0.30 Cost for product KB ( 180000 X 0.30) 54439

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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