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Category > Accounting Posted 19 Aug 2017 My Price 9.00

Sylvia’s Styles

20.    LO.3 (Sell or process further) In a joint process, Sylvia’s Styles produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of rela- tive sales value at split-off. The company can choose to process each of the products fur- ther rather than sell the fabric at split-off. Information related to these products follows.

 

 

Dresses

Jackets

Blouses

Total

Number of units produced

10,000

16,000

6,000

32,000

Joint cost allocated

$174,000

?

?

$360,000

Sales values at split-off point

?

?

$80,000

$600,000

Additional costs of processing further

$26,000

$20,000

$78,000

$124,000

Sales values after all processing

$300,000

$268,000

$210,000

$778,000

a.     What amount of joint cost should be allocated to jackets and blouses?

b.    What are the sales values at the split-off point for dresses and jackets?

c.     Should any of the products be processed beyond the split-off point? Show computations.

d.    If 4,000 jackets are processed further and sold at the regular selling price, what is the gross profit on the sale?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 12:08 AM My Price 9.00

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