Scribd
Upload
3K views2 pages

M8 CHP 12 4 Allocation of Joint Costs

Lee Co. produces two joint products, BEX and ROM, with $30,000 in joint production costs for June. Further processing was required to make the products salable. June post-split costs were $35,000 for 1,600 BEX units and $25,000 for 800 ROM units. BEX sells for $50/unit and ROM for $100/unit. Using the net realizable value method, $16,500 of the joint costs were allocated to ROM.

Uploaded by

Queennie Ellam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
3K views2 pages

M8 CHP 12 4 Allocation of Joint Costs

Lee Co. produces two joint products, BEX and ROM, with $30,000 in joint production costs for June. Further processing was required to make the products salable. June post-split costs were $35,000 for 1,600 BEX units and $25,000 for 800 ROM units. BEX sells for $50/unit and ROM for $100/unit. Using the net realizable value method, $16,500 of the joint costs were allocated to ROM.

Uploaded by

Queennie Ellam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 2

Tab: 1. Problem File: 666706196.

xls Page 1 of 2

Lee Co. produces two joint products, BEX and ROM.


Joint production costs for June were $30,000.
During June further processing beyond the split-off point was
needed to convert the products into salable form.
June production costs after split-off were:
$35,000 for 1,600 units of BEX.
$25,000 for 800 units of ROM.
BEX sells for $50 per unit, and ROM sells for $100 per unit.
Lee uses the net realizable value method for allocating joint product costs.
For June, the joint costs allocated to product ROM were
a. $20,000 b. $16,500 c. $13,500 d. $10,000

Lee Company-Joint cost allocat Bex Rom Total


Joint Costs $ 30,000
Unit selling price $ 50.00 $ 100.00
Total Sales - in units 1,600 800
Total Revenue $ 80,000 $ 80,000
Costs after split-off
Net realizable value
Ratios
Joint cost allocation
Tab: 2. Answers File: 666706196.xls Page 2 of 2

Lee Co. produces two joint products, BEX and ROM.


Joint production costs for June were $30,000.
During June further processing beyond the split-off point was
needed to convert the products into salable form.
June production costs after split-off were:
$35,000 for 1,600 units of BEX.
$25,000 for 800 units of ROM.
BEX sells for $50 per unit, and ROM sells for $100 per unit.
Lee uses the net realizable value method for allocating joint product costs.
For June, the joint costs allocated to product ROM were
a. $20,000 b. $16,500 c. $13,500 d. $10,000

Lee Company-Joint cost allocat Bex Rom Total


Joint Costs $ 30,000
Unit selling price $ 50.00 $ 100.00
Total Sales - in units 1,600 800
Total Revenue $ 80,000 $ 80,000
Costs after split-off $ 35,000 $ 25,000
Net realizable value $ 45,000 $ 55,000
Ratios 45% 55%
Joint cost allocation $ 13,500 $ 16,500

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy