Distribute the combined cost using the gross profit rate

Assignment Help Cost Accounting
Reference no: EM132562621

TOPRAK company produces the G10 and H8 products after the separation point, and after the additional cost expense of $ 15,000 for the G10 product and $ 45,000 for the H8 product, new products are produced under the names Super G10 and Super H8. 250 kg from Super G10 and 400 kg from Super H8 are produced. The sales price of Super G10 is 400 dollars / kg, and the sales price of Super H8 is 800 dollars / kg. Total combined costs up to the point of separation are $ 255,000.

If desired, the G10 product can be sold for $ 30,000 at the point of separation, and the H8 product for $ 70,000. According to these data;

Question a) Distribute the combined cost using the gross profit rate method.

Question b) In your opinion, should the enterprise subject G10 and H8 products to additional production? Please explain.

Question c) Distribute the combined cost on the assumption that 420 kg of finished products with a market value of 10 dollars / kg are released before the separation point

Reference no: EM132562621

Questions Cloud

What are the various types of ways the management accountant : What are the various types of ways the Management accountant can classify the costs by Management decisions? Describe any 5.
What is the direct materials efficiency : Direct Materials is $1.70 per pound and the Direct Labor has a standard price of $9.00 per hour. What is the direct materials efficiency (quantity) variance
What would be the net rental income : Rental revenue, including unearned rent deposits of $1,000, was $35,000. What would be the net rental income
Prepare profit or loss account for sales : Prepare profit/loss account for sales of 200 peices, 300 pieces. Purchase cost 1100 per peice. Sales cost 1800 per piece. Expenses per month
Distribute the combined cost using the gross profit rate : Distribute the combined cost on the assumption that 420 kg of finished products with a market value of 10 dollars / kg are released
Calculate the total cost of the units transferred to pahse : Calculate the total cost of the units transferred to the second phase, Calculate the total cost of the units remaining at the end of the period.
What amount reported as loss on note receivable discounting : Company accepted from a customer a P4,000,000, 90-day, 12% note dated August 31, 2019. What amount should be reported as loss on note receivable discounting
How much will save annually due to decision : Produced per month, which can be sold for P.2.20 per kg., should the firm make the investment? How much will he save annually due to his decision?
What amount of loss on factoring should be recognized : The entity had previously established an allowance for doubtful accounts of P250,000 in connection with such accounts. What amount of loss on factoring

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd