ACCT 344 Week 5 Homework
1. Question:Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sale, both products must be processed further, incurring separable costs of $1 per unit for I and $2 per unit for II. The market price for Product I is $20 and for Product II is $15.
a. Allocate joint production costs to each product using the physical units method.
b. Allocate joint production costs to each product using the net realizable value method.
c. Allocate joint production costs to each product using the constant gross margin percentage method.
2. Question:Mike’s Meats incurs costs of $4,000 while processing raw chicken meat into three products: breasts, wings, and thighs. The meat is then sold to local grocery stores based on the following……………..
Required: (Calculate relative quantity to three decimal points.)
a. Determine the cost and gross profit percentage for each type of chicken using the physical units method of joint cost allocation.
b. Repeat part (a) using the sales-value-at-split-off method of joint cost allocation.
c. The company has an opportunity to sell wings to local restaurants for $1.00 per pound but additional packaging is required, which will cost $300 per 1,000 lb. Assuming the physical unit method is used to allocate joint costs, should the offer be accepted?
ACCT 344Week 5 Quiz
1. Question: (TCO 7)A common cost occurs
2. Question: (TCO 7) Which would be the most appropriate base for allocating the costs of the housekeeping department?
3. Question: (TCO 7) The Ruling Company assigns plant administration costs to the production departments based on the number of employees. Which would NOT be a good combination of common costs with an activity driver?
4. Question: (TCO 7) Joint costs are allocated because of
5. Question: (TCO 7) Which method allocates support department costs?
6. Question: (TCO 7) Joint costs are
7. Question: (TCO 7) Which method allocates joint production costs based on the pounds of product produced?
8. Question: (TCO 7) DeeDee Corporation manufactures the following products in its factory. $400,000 of costs were incurred…………How much joint cost would be allocated to Product A based on the physical units method?
9. Question: (TCO 7) Sally Corporation manufactures four products. The following data were provided by the cost accountant for the current year……….
10. Question: (TCO 7) Lamb Inc. processes wool into four grades of yarn as follows…….Which is the amount of joint costs assigned to Superwash Wool using the constant gross margin percentage method?