Maurice Tutor

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Category > Management Posted 26 Oct 2017 My Price 4.00

sales-value-at-split-off method.

Refer to Exercise 7-14 and allocate the joint costs using the sales-value-at-split-off method.

 

 

 

 

 

Presley, Inc., produces two products, ups and downs, in a single process. The joint costs of this process were $42,000, and 39,000 units of ups and 21,000 units of downs were produced. Separable processing costs beyond the split-off point were as follows: ups,

$18,000; downs, $5,780. Ups sell for $2.00 per unit; downs sell for $2.18 per unit.

 

Required

1.    Allocate the $42,000 joint costs using the estimated net realizable value method.

2.    Suppose that ups could be sold at the split-off point for $1.80 per unit. Should Presley sell ups at split-off or process them further? Show supporting computations.

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Maurice Tutor
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Status NEW Posted 26 Oct 2017 01:10 PM My Price 4.00

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