5. value: 3.16 points Problem 11-65 Joint Costing in a Process Costing Context:

Question

5. value: 3.16 points Problem 11-65 Joint Costing in a Process Costing Context: Estimated Net Realizable Value Method (LO 11-7, 10) West Coast Designs produces three products: super, deluxe, and generic. Super and deluxe are its main products; generic is a by-product of super. Information on the past month's production processes follows: • In Department A, 315,000 units of the raw material X-1 are processed at a total cost of $512,975. After processing in Department A, 50 percent of the units are transferred to Department B, and 50 percent of the units (now unprocessed deluxe) are transferred to Department C. • In Department B, the materials received from Department A are processed at an additional cost of $232,000. Seventy percent of the units become super and are transferred to Department D. The remaining 30 percent emerge as generic and are sold at $4.60 per unit. The additional processing costs to make generic salable are $50,600. • In Department C, deluxe is processed at an additional cost of $810,000. A normal loss of 5 percent of the units of good output of deluxe occurs in this department. The remaining good output is then sold for $26 per unit. • In Department D, super is processed at an additional cost of $100,000. After this processing, super can be sold for $20 per unit.

Explanation / Answer

Super Deluxe Sales Value after completion 2205000 3900000 Sales revenue of Generic 217350 Less: Separate procecss cost Department B 232000 DepartmentC 810000 Department D 100,000 Additional processing cost of Generic 50600 Approximate relisable value 2039750 3090000 Note: Sales value of Super: Total B C Total units in Process-A 312500 Allocated to Deppt B and C equally 157500 157500 Less: Normal loss in Deptt C 7500 (157500/105*5) Units of Generic separated 30% 47250 Units of Product Super / Deluxe 110250 150000 Sales reven ue of each product: Super(110250*20) 2205000 Deluxe (150000*26) 3900000 Generic (47250*4.60) 217350 Req B: Joint cost allocated: 512975 Cost allocated Product Super (2039750/5129750 *512975) 203975 Product Deluxe (3090000/5129750*512975) 309000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

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