Reference no: EM132758257
Question - Case - Shaffner Corporation produces three products, Alpha, Beta and Gamma. Alpha and Gamma are joint products; Beta is a by-product of Alpha No joint cost is to be allocated to the by-product. The production processes for a given year are as follows:
a. In Department 1, 110,000 pounds of material Rho (raw materials) are processed, at a total cost of P120,000. After processing, 60% of units are transferred to Department 2, and 40% of the units (now Gamma) are transferred to Department 3.
b. In Department 2, the material is further processed at a total additional cost of P38,000. Seventy percent of the units (now Alpha) are transferred to Department 4 and 30% emerge as Beta, the by-product, to be sold at P1.20 per pound. The marketing expense related to Beta is P8,100.
c. In Department 4, Alpha is processed at a total additional cost of P23,660. After processing, Alpha is ready for sale at P5 per pound.
d. In Department 3, Gamma is processed at a total additional cost of P165,000. In this department, a normal loss of units of Gamma occurs, which equals 10% of the good output of Gamma. The remaining good output is sold for P12 per pound.
Required - Using the market value at split-off point and treating the net realizable value of Beta as an addition to the sales value of Alpha, determine the amount of joint costs to be allocated between the two joint products, Alpha and Gamma.
|
Ethical leadership
: Describe the behaviors that are most important for you to feel trust in the ethical leadership of a supervisor, manager, or company executive?
|
|
What amount of joint processing cost is allocated
: What amount of joint processing cost is allocated to each product based on sales value at splitoff? What amount of joint processing cost is allocated to each.
|
|
How do determine the outcome for doogie lawsuit
: Legal counsel for CCC believes that Benny is likely to get around $30,000 but is unable to determine the outcome for Doogie's lawsuit.
|
|
How the title of company ethics document affects
: Describe how the title of a company's ethics document affects your attitude about the content?. Do you find one title more attractive than another?
|
|
Determine the amount of joint costs to be allocated
: Determine the amount of joint costs to be allocated between the two joint products, Alpha and Gamma
|
|
What will the value of the bond s
: An investor had two bonds in his portfolio that have a face value of $1,000 & pays a 7% annual coupon. Bond L matures in 20 years, while bond S matures in 1
|
|
Code of conduct in medical tourism
: Medical Tourism has become a growing industry, especially in developing countries.
|
|
Investing in the stock market
: What does Keynes mean when he described investing in the stock market as beauty contest?
|
|
Calculate the net present value for the project
: The Rare Find Co. has the following information: Debt outstanding: $400 million, Before-tax cost of debt: 5%, Market cap: $7,500 million.
|