The following questions relate to Kyle Company, which manufactures products KA,
ID: 2484384 • Letter: T
Question
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $133,000. Additional information follows: If Processed Further Product Units Produced Sales Value at Split-Off Sales Values Additional Costs KA 59,000 $ 190,000 $ 210,000 $ 34,000 KB 38,000 150,000 210,000 27,000 KC 14,000 100,000 200,000 21,000 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 $34,000 if processed further)?
(b) Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $27,000 if processed further)?
Explanation / Answer
Calculation of the cost of KA Units 59000 Joint Cost 133000 133000*59000/(59000+38000+14000) 133000*59000/111000 70693.69 KA Cost Joint Cost 70694 Additional Cost 34000 Total Cost 104694 b If allocation is sales value at split off Cost 133000*150000/(190000+150000+100000) 133000*150000/440000 45340.91 Joint Cost 45341 Additional Cost 27000 Total Cost 72341
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.