Klugh Corporation - Joint Costs and Sell/Process Decisions Klugh Corporation man
ID: 2486416 • Letter: K
Question
Klugh Corporation - Joint Costs and Sell/Process Decisions
Klugh Corporation manufactures three products, Qwest, Global Crossing, and Adelphia from a joint process. Joint costs are allocated on the basis of the relative sales value at split-off. Additional information is as follows:
REQUIRED: Based on the above information, how much of the joint costs should Klugh Corporation to allocate to Global Crossing?
Qwest Global Crossing Adelphia Total Units produced 6,000 4,000 2,000 12,000 Joint costs $72,000 ? ? $120,000 Sales value at split-off $100,000 $70,000 $30,000 $200,000 Add'l costs if processed further $14,000 $10,000 $6,000 $30,000 Sales value if processed futher $140,000 $60,000 $40,000 $240,000Explanation / Answer
Joint cost allocated by Klugh Corporation on the basis of sale value at split-off
Global Crossing =$70,000/$200,000*$120000=$42,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.