llocating Joint CostsUsing the Net Realizable Value MethodA company manufacturesthree products, L-Ten, Triol,...llocating Joint...

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llocating Joint CostsUsing the Net Realizable Value Method
A company manufacturesthree products, L-Ten, Triol, and Pioze, from a joint process. Eachproduction run costs $12,300. None of the products can be sold atsplit-off, but must be processed further. Information on one batchof the three products is as follows:
Product         Gallons Further Processing
Cost per Gallon Eventual Market
Price per Gallon
L-Ten         3,200 $0.70   $2.10
Triol         3,700 1.10 5.40
Pioze         2,000 1.50 6.20
Required:
1.Allocate the joint cost to L-Ten, Triol, and Pioze using the netrealizable value method. Round your allocation percentages to fourdecimal places and round the allocated costs to the nearestdollar.
Joint Cost
Grades Allocation
L-Ten $
Triol
Pioze
Total $
2.What if it cost $2.10 to process eachgallon of Triol beyond the split-off point? How would that affectthe allocation of joint cost to the three products? Round yourallocation percentages to four decimal places and round theallocated costs to the nearest dollar.
Joint Cost
Grades Allocation
L-Ten $
Triol
Pioze
Total $

Product	Gallons	Further Processing Cost per Gallon	Eventual Market Price per Gallon
L-Ten	3,200	$0.70	$2.10
Triol	3,700	1.10	5.40
Pioze	2,000	1.50	6.20

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4.4 Ratings (885 Votes)

Net realizable value Sale value Additional processing cost Product Sale value Additional processing cost Net realizable value LTen 6720 3200210 2240 3200070 4480 Triol 19980 3700540 4070 3700110 15910 Pioze 12400 See Answer

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In: Accountingllocating Joint CostsUsing the Net Realizable Value MethodA company manufacturesthree products, L-Ten, Triol,...llocating Joint CostsUsing the Net Realizable Value MethodA company manufacturesthree products, L-Ten, Triol, and Pioze, from a joint process. Eachproduction run costs $12,300. None of the products can be sold atsplit-off, but must be processed further. Information on one batchof the three products is as follows:Product GallonsFurther ProcessingCost per GallonEventual MarketPrice per GallonL-Ten 3,200$0.70 $2.10 Triol 3,7001.105.40Pioze 2,0001.506.20Required:1.Allocate the joint cost to L-Ten, Triol, and Pioze using the netrealizable value method. Round your allocation percentages to fourdecimal places and round the allocated costs to the nearestdollar.Joint CostGradesAllocationL-Ten$TriolPiozeTotal$2.What if it cost $2.10 to process eachgallon of Triol beyond the split-off point? How would that affectthe allocation of joint cost to the three products? Round yourallocation percentages to four decimal places and round theallocated costs to the nearest dollar.Joint CostGradesAllocationL-Ten$TriolPiozeTotal$

	Joint Cost
Grades	Allocation
L-Ten	$
Triol
Pioze
Total	$