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Category > Accounting Posted 19 Aug 2017 My Price 9.00

honey syrup

17.    LO.3 (Processing beyond split-off and cost allocations) All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process in 2010 is $123,200.

 

 

 

Product

 

Units of Output

Per Unit Selling Price at Split-Off

Incremental Processing Cost

 

Final Sales Price

Honey butter

10,000

4.00

$3.00

$ 6.00

Honey jam

20,000

6.40

4.00

14.00

Honey syrup

1,000

3.00

0.40

3.60

Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product.

a.     Determine which products should be processed beyond the split-off point.

b.    Assume honey syrup should be treated as a by-product. Allocate the joint cost based on units produced, weight, and sales value at split-off. Use the net realizable value method in accounting for the by-product. (Round to nearest whole percentage.)

Answers

Maurice Tutor
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Status NEW Posted 19 Aug 2017 12:08 AM My Price 9.00

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