Calculate the cost assigned to candy

Assignment Help Financial Accounting

Reference no: EM131214367

Formula, Inc., processes sugar into candy and powdered drink mix. The sugar costs $61,000 per load. The process involves mixing the sugar for 2 hours, producing 60,000 packs of candy with a market value of $25,000, and 20,000 packs of drink mix with a market value of $100,000. The joint cost of the mixing process is $28,600.

a) Calculate the cost assigned to candy if the sugar and mixing process costs are allocated on the basis of units of output. Round your answer to the nearest whole dollar and enter without symbols.

b) If the sugar and the mixing process costs are to be allocated on the basis of units of output, what cost is assigned to powdered drink mix? Round your answer to the nearest whole dollar and enter without symbols.

Reference no: EM131214367

Questions Cloud

Adjusting entry to record allowance for doubtful accounts : While performing an audit on your client you note the following balances in the client's aging of accounts receivable 91+ days bucket: Total receivables as of the balance sheet date are 1,000,000. The client historically has recorded an allowance for..

Calculate the number of units of product : Able Company expects to begin the coming year with 12,000 units of product X in the inventory of finished goods. It expects to sell 130,000 units of the product and end the year with 15,800 units in finished goods inventory. Calculate the number of u..

Periodic cash flows associated with an investment project : What would the periodic cash flows associated with an investment project include (choose all that apply)?

The annual after tax cash flow associated with this asset : Wilcox Company is considering an investment that will generate cash revenues of $120,000 per year for 8 years, and have cash expenses of $60,000 per year for 8 years. The cost of the asset is $120,000, and it will be depreciated using straight-line d..

Calculate the cost assigned to candy : Formula, Inc., processes sugar into candy and powdered drink mix. The sugar costs $61,000 per load. The process involves mixing the sugar for 2 hours, producing 60,000 packs of candy with a market value of $25,000, and 20,000 packs of drink mix with ..

Using the net realizable value method : Evans Company processes a chemical, Exacto 7, through a pressure treatment operation. The complete process has two outputs, X and Y. The January costs to process Exacto 7 are $50,000 for materials and $100,000 for conversion costs. Using the net real..

Example of good internal control for the credit department : Which of the following is an example of a good internal control for the credit department?

Inventory costing method results in lowest ending inventory : Which inventory costing method results in the lowest ending inventory during a period of rising merchandise inventory cost? Some companies account for purchases of equipment less than $500 as expenses instead of as assets. This policy is most closely..

Data breach disclosure requirement on financial reporting : Analyze the effects of the SEC‘s data breach disclosure requirement on financial reporting, based on the current language of the requirement. Recommend a change to the disclosure requirements to strengthen public company disclosures of cyberattacks. ..

User Account

All Pages