If you could show the solution process, I would really appreciate it. A dairy al
ID: 2372055 • Letter: I
Question
If you could show the solution process, I would really appreciate it.
A dairy allocates the cost of unprocessed milk to the production of milk, cream, butter and cheese. For the current period, unprocessed milk was purchased for $260,000, and the following quantities of product and sales revenues were produced.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
How much of the $260,000 cost should be allocated to milk? (rounded)
A sawmill paid $76,000 for logs that produced 220,000 board feet of lumber in 3 different grades and amounts as follows:
How much of the $76,000 joint cost should be allocated to No. 2 Common?
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
The Maroon Division occupies 20,000 square feet in the plant. The Yellow Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $60,000.
Gross profit for the Maroon and Yellow Divisions is:
Joint products A and B are produced in a single operation from Material M. 500 gallons of Material M, costing $550, produced 333 gallons of Product A, selling for $3 per gallon, and 167 gallons of Product B, selling for $7 per gallon.
If the $550 cost of the 500 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A's share would be:
rev: 05_04_2012
A sawmill bought a shipment of logs for $44,000. When cut, the logs produced a million board feet of lumber in the following grades:
Type 1 - 340,000 bd. ft. priced to sell at $.12 per bd. ft.
Type 2 - 320,000 bd. ft. priced to sell at $.06 per bd. ft.
Type 3 - 340,000 bd. ft. priced to sell at $.04 per bd. ft.
How much cost should be allocated to Type 1 and Type 2, respectively?
Longtime Chemical produced 10,000 gallons of Greon and 20,000 gallons of Baron. Joint costs incurred in producing the two products totaled $7,800. At the split-off point, Greon has a market value of $6.00 per gallon and Baron $4.00 per gallon. What portion of the joint costs should be allocated to Greon if the basis is market value at point of separation?
Explanation / Answer
1)All the products together total $207,000 units. Milk represents 115,000 units. Therefore allocate (115,000 ÷ 207,000) units which is 55.556% (rounded).
This comes to $260,000 * .55556 = $144,444.40 for milk.
3)
(580 - (48 + 155 + (30 + 20)/60*30)) * $1,000)
5)
Type 1 has a value of $40800
Type 2 has a value of $19,200
Type 3 has a value of $13600.
6)Breon Mkt Value = $60,000, Joint Cost Allocation = $4,500
Baron Mkt Value = $40,000, Joint Cost Allocation = $3,000
Total Market Value = $100,000, Total Joint Costs = $7,500