Riley Company Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.

Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard

A 1,800 $7.00 $4.50 $1.50 $ 8.00

C 2,600 10.00 6.00 3.50 12.25

If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Riley Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?

Question

Riley Company Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.

	Yards	Sales price per yard at split-off	Disposal cost per yard at split-off	Further processing per yard	Final sale price per yard
A	1,800	$7.00	$4.50	$1.50	$ 8.00
C	2,600	10.00	6.00	3.50	12.25

If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Riley Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?

Quizplus · Accepted Answer

The sales value at split-off for Product C is calculated as 2,600 yards * $10.00 = $26,000. The total sales value at split-off for both products is (1,800 * $7.00) + (2,600 * $10.00) = $12,600 + $26,000 = $38,600. The joint processing cost allocated to Product C is ($26,000 / $38,600) * $9,000 = $6,062.

Riley Company Riley Company Produces Two Products from a Joint Process: a Process