What were the average unit costs of curve

Assignment Help Accounting Basics

Reference no: EM132853780

Curve and Slid

The Matthewson Corporation manufactures two products, Curv and Slid Under present operations, raw materials are processed in Department A The two products are separated at the end of this processing.

For every unit of Curv, three units of Slid are obtained. Curv is then finished in Department B and Slid is finished in Department C.

Actual operating data for the current year were as follows:

Units produced: Curv: Slid:	A 25,000 75,000	B 25,000	C 75,000
Costs incurred:
Direct Materials	$ 150,000
Direct Labour	80,000	$ 30,000	$ 40,000
Variable MOH	20,000	10,000	20,000
Fixed MOH	90,000	25,000	35,000

At present, Curve is sold for $10 and Slid for $5 per unit. Both products are also readily marketable at the completion of processing in Dept A: Curve for $8 per unit and Slid for $3 per unit.

Required:

1) Use the value at split-off to allocate joint costs.

2) Under an absorption costing system, what were the average unit costs of Curve and Slid during the current year? Showw appropriate supporting calculations.

3) Should Curve and Slid be further processed?

Reference no: EM132853780

Questions Cloud

Calculate nrv of the by-product and remove it from the joint : Calculate NRV of the By-product and remove it from the Joint cost and Calculate Gross Profit if we sold all of the units A & B that we produced

What is blue river bank net interest income : 1- You are given the balance sheet of Blue River Bank below. The numbers shown below are in millions of U.S. Dollars.

Explain stock required rate of return : If the market risk premium increased to 5%, what would happen to the stock's required rate of return?

What is the net realizable value : You make 4,000 units and sell them for $5 each. Your expenses related to this item total $8,000 fixed and $6,000 variable. What is the net realizable value

What were the average unit costs of curve : Under an absorption costing system, what were the average unit costs of Curve and Slid during the current year? Showw appropriate supporting calculations

Probability of a jump in any particular trading day : Suppose that the expected number of discrete stock price jumps is 2 per year. What would be the probability of a jump in any particular trading day?

Calculate the break-even level of income : Calculate the break-even level of income for a family of four. If all families above the break-even level of income pay a flat-rate 25 percent tax

What is the basic goal of financial management : What is the basic goal of financial management with regard to capital structure?

What is the borrower loan-tovalue ratio : If the borrower purchases a house that is appraised for $346,154, what is the borrower's loan-tovalue ratio (LTV)? How does the bank use this number

User Account

All Pages