Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method. The amount of joint cost allocated to Bolts would be:
Multiple Choice
$32,000.
$40,000.
$48,000.
$60,000.
$80,000.
Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows.
If Processed Further
Product
Pounds Produced
Per-Pound Sales Price
Sales Value
Separable Cost
A
20,000
$
12
$
350,000
$
90,000
B
30,000
8
300,000
60,000
If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:
Multiple Choice
$80,000.
$100,000.
$104,000.
$120,000.
None of the answers is correct.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
