Joint costs according to the proportion of units

Assignment Help Accounting Basics
Reference no: EM13148631

A Company processes products in a joint processing operation that produces products A and B in a joint process, and by-product C. The company incurs $2,000,000 of joint processing costs monthly. Currently, 600 units of A, 800 units of B, and 100 units of C are being produced each month. Management plans to decrease B's production by 200 units in order to increase the production of A by 300 units. Output of by-product C will stay the same. This change in production will require additional joint production costs of $200,000.

What is the amount of the joint costs allocable to A before the changes are made to the existing production process assuming the company allocates its joint costs according to the proportion of units produced?

A) $800,000

B) $750,000

C) $1,200,000

D) None of the above

Reference no: EM13148631

Questions Cloud

Determine which of three retraining programs is the best : Employees of MNM Corporation are about to undergo a retraining program. Management is trying to determine which of three programs is the best.
Yield after-tax net income : How many dresses must the Bridal Shoppe sell to yield after-tax net income of $18,000, assuming the tax rate is 40%?
How many grams of carbon dioxide are produced : how many grams of carbon dioxide are produced when 23.5 g of 1-pentanol react with excess oxygen in a combustion reaction?
Determining beginning cash balance : In 2006 Bombay Corporation had cash receipts of $14,000 and cash disbursements of $8,000. Their ending cash balance at December 31, 2006 was $22,000. What was their beginning cash balance?
Joint costs according to the proportion of units : What is the amount of the joint costs allocable to A before the changes are made to the existing production process assuming the company allocates its joint costs according to the proportion of units produced?
Statement of cash flows using direct method : Exercise 23-12 (WileyPlus) prepare a statement of cash flows using direct method
What is the molarity of the solution : A solution has a volume of 2.0 L and contains 36.0 g of glucose. If the molar mass of glucose is 180 g/mol, what is the molarity of the solution
Understand that mercantilisim can bring in revenue : I understand that mercantilisim can bring in revenue and surplus for the countries treasury, however what are the downsides to this economic philosophy?
Full employment is without a doubt : Full employment is without a doubt the ultimate goal of every nation; however, in spite of the failures of controlled labor markets over the past thirty years there is still a lot of controversy

Reviews

Write a Review

Accounting Basics Questions & Answers

  Setting up an amortization schedule

Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 10 percent, compounded annually.

  Is any stakeholder harmed if brucki preference is used

The market value of Lake Corporation's inventory has declined below its cost. Vickie Maher, the controller, wants to use the allowance method to write down inventory because it more clearly discloses the decline in market value, and it does not di..

  What dollar amount of supplies will be included

The January 1 inventory of supplies in an Internal Service Fund is $9,000. The fund purchases $23,000 of supplies during the year. The December 31 inventory of supplies is $6,000. If the pricing objective of the fund is to be achieved, what dollar..

  Division relevant to operating range

The Red Car Division has excess capacity and the 1,000 units can be produced without interfering with the current outside sales of 5,000. The 6,000 volume is within the division's relevant operating range.

  Outstanding common stock

Meredith Corporation acquired 20% of the outstanding common stock of Cairo Corporation on December 31, 2010. The purchase price was $1,250,000 for 50,000 shares.

  Calculate ez maximum depreciation deduction

The books of EZ Company, a calendar year taxpayer, had the following assets and related information as of December 31, 2011. EZ's policy is to record depreciation on December 31 by way of a journal entry.

  Entries for stock dividends and stock splits

The stockholder's equity accounts of Lawrence Company have the folowing balance on December 31, 2010. Common stock, $10 par, 274,000 shares issued and outstanding $2,740,000, Paid-in capital in excess of par $1,200,000, Retained Earnings $5,600,00..

  Commitments and unrecorded liabilities to vendors

How might a purchasing manager use his/her position to defraud the company? What can be done to prevent it? Where could an auditor look to find evidence of losses on purchase commitments and unrecorded liabilities to vendors?

  What is member p basis at the end

Member P has an outside basis in his interest in Bing LLC of $10,000 and in 2007, the flowing transactions take place.

  Determining annual inventory holding cost

Given the EOQ, what is the average inventory? What is the annual inventory holding cost? In minimizing cost, how many orders would be made each year? What would be the annual ordering cost?

  Concept of conservatism

The concept of conservatism is often considered important in accounting. The application of this concept means that in the event some doubt occurs as to how a transaction should be recorded, it should be recorded so as to

  What are the auditing procedures green

What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?

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