Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta-1, Beta-2, and Beta-3. Davenport sells Beta-1 at the split-off point, with no further processing; it processes Beta-2 and Beta-3 further before they can be sold. Beta-2 is fused in Department B, and Beta-3 is solidified in Department C. Following is a summary of costs and other related data for the year ended November 30.
Department
(1) Distilling
(2) Fusing
(3) Solidifying
Cost of Alpha-11
$
712,000
0
0
Direct labor
170,000
$
343,000
$
496,000
Manufacturing overhead
150,000
163,000
400,000
Products
Beta-1
Beta-2
Beta-3
Gallons sold
182,000
364,000
546,000
Gallons on hand at year-end
129,000
0
187,000
Sales
$
728,000
$
2,184,000
$
3,276,000
Davenport had no beginning inventories on hand at December 1 and no Alpha-11 on hand at the end of the year on November 30. All gallons on hand on November 30 were complete as to processing. Davenport uses the net realizable value method to allocate joint costs.
Required:
Compute the following:
a. The net realizable value of Beta-1 for the year ended November 30.
b. The joint costs for the year ended November 30 to be allocated.
c. The cost of Beta-2 sold for the year ended November 30. (Do not round intermediate calculations.)
d. The value of the ending inventory for Beta-1. (Do not round intermediate calculations.)
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: Zin AI - Your personal assistant for all your inquiries!