Accounting help
Problem 1 - Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer is as follows:
Product | Cases | Sales Value at Splitoff Point | Separable Costs | Selling Price |
Catsup | 100,000 | $6 per case | $3.00 per case | $28 per case |
Juice | 150,000 | 8 per case | 5.00 per case | 25 per case |
Canned | 200,000 | 5 per case | 2.50 per case | 10 per case |
Question: Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product. (10 points)
Problem 2 - Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:
Product | Units Produced | Sales Value at Splitoff Point |
Turpentine | 6,000 liters | $60,000 |
Paint thinner | 6,000 liters | 50,000 |
Spot remover | 3,000 liters | 25,000 |
Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used. (10 points)
Problem 3 - Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows:
|
| Sales Value at | |
Product | Board feet | Splitoff Point | Ending Inventory |
2 x 4's | 6,000,000 | $0.30 per board foot | 500,000 bdft. |
2 x 6's | 3,000,000 | 0.40 per board foot | 250,000 bdft. |
4 x 4's | 2,000,000 | 0.45 per board foot | 100,000 bdft. |
Slabs | 1,000,000 | 0.10 per board foot | 50,000 bdft. |
Question: Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary. (10 points)
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