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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 22
ALLOCATING JOINT COSTS USING THE WEIGHTED AVERAGE METHOD
Refer to Cornerstone Exercise 7-7. Assume that Appletime, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples:
Total joint cost is $6,000.
Required:
1. Allocate the joint cost to the four grades of apples using the weighted average method. (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 2.0? How would that affect the allocation of cost to Grade A apples? How would it affect the allocation of cost to the remaining grades?
Refer to Cornerstone Exercise 7-7. Assume that Appletime, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples:
Total joint cost is $6,000.
Required:
1. Allocate the joint cost to the four grades of apples using the weighted average method. (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 2.0? How would that affect the allocation of cost to Grade A apples? How would it affect the allocation of cost to the remaining grades?
Explanation
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The allocation of joint cost to the f...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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