Shiny Floors Company produces four floor cleaners from the same process: C, D, E
ID: 2530973 • Letter: S
Question
Shiny Floors Company produces four floor cleaners from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to the nearest dollar.)
Barrels
Sales price
per barrel
at split-off
Disposal
cost
per barrel
at split-off
Further
processing
costs
Final
sales
price
per barrel
750
$10.00
$6.50
$2.00
$13.50
1,000
8.00
4.00
2.50
10.00
1,400
11.00
7.00
4.00
15.50
2,000
15.00
9.50
4.50
19.50
If Shiny Floors sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E, $3.50; G, $6.00.
a. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product C?
b. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product D?
c. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product E?
d. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product G?
Barrels
Sales price
per barrel
at split-off
Disposal
cost
per barrel
at split-off
Further
processing
costs
Final
sales
price
per barrel
750
$10.00
$6.50
$2.00
$13.50
D1,000
8.00
4.00
2.50
10.00
E1,400
11.00
7.00
4.00
15.50
G2,000
15.00
9.50
4.50
19.50
Explanation / Answer
Total Barrels 750+1000+1400+2000 = 5150 a 750/5150*9000 1311 b 1000/5150*9000 1748 c 1400/5150*9000 2447 d 2000/5150*9000 3495
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