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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 29
ALLOCATING JOINT COSTS USING THE SALES-VALUE-AT-SPLIT-OFF METHOD
Refer to Cornerstone Exercise 7-7. Assume that Appletime, Inc., uses the sales-valueat- split-off method of joint cost allocation and has provided the following information about 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 sales-value-at-split-off method. (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B 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 sales-valueat- split-off method of joint cost allocation and has provided the following information about 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 sales-value-at-split-off method. (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B 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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