The following questions relate to Kyle Company, which manufactures products KA,
ID: 2597356 • 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 $194,000. Additional information follows: If Processed Further Product Units Produced Sales Value at Split-Off Sales Values Additional Costs KA 81,500 $ 260,000 $ 340,000 $ 46,000 KB 57,050 227,500 280,000 40,000 KC 24,450 162,500 240,000 34,000 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 $46,000 if processed further)? (Do not round your intermediate calculations.) 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 $40,000 if processed further)? (Do not round your intermediate calculations.)
Explanation / Answer
Total units of KA =
The following questions relate to kyle company,which manufactures products KA,KB, and KC from a joint process. Joint product costs were $194,000.Additional information follows: If Processed Further Product Units Produced Sales at Split -Off Sales Value Additional costs KA 81,500 $260,000 $340,000 $46,000 KB 57,050 227,500 280,000 40,000 KC 24,450 162,500 240,000 34,000 163,000 $650,000 Required a)Assuming that joint product cost are allocated using the physical quantities(units produced),what was the total cost of product KA (including $46,000 if processed further)?Total units of KA =
81500 units Total units produced = 163000 units Joint product costs = $194,000 Amount allocated from joint costs: (81500 ÷ 163000) x $194,000 = $ 97,000 Additional processing costs $ 46,000 Total costs of Product KA $ 143,000 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 $40,000 if processed further)? Net realizable value of KB at split-off = $227,500 Total net realizable value at split-off = 650,000 Joint product costs = 194,000 Amount allocated from joint costs: (227500 ÷ 650000) x $194,000 = $ 67,900 Additional processing costs $ 40,000 Total costs of Product KB $ 107,900Related Questions
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