Shiny Floors Company Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )

Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing costs Final sales price per barrel

C 750 $10.00 $6.50 $2.00 $13.50

D 1,000 8.00 4.00 2.50 10.00

E 1,400 11.00 7.00 4.00 15.50

G 2,000 15.00 9.50 4.50 19.50

If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00. Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product E?

Question

Shiny Floors Company Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )

	Barrels	Sales price per barrel at split-off	Disposal cost per barrel at split-off	Further processing costs	Final sales price per barrel
C	750	$10.00	$6.50	$2.00	$13.50
D	1,000	8.00	4.00	2.50	10.00
E	1,400	11.00	7.00	4.00	15.50
G	2,000	15.00	9.50	4.50	19.50

If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00. Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product E?

Quizplus · Accepted Answer

To find the amount of joint processing cost allocated to Product E using net realizable value at split-off, we need to subtract the disposal cost of E ($3.50) from its selling price after further processing.

Selling price of E after processing = $25.50
Net realizable value at split-off of E = Selling price of E after processing - Disposal cost of E
= $25.50 - $3.50
= $22.00

Joint processing cost allocated to E = Joint product costs * (Net realizable value at split-off of E / Total net realizable value at split-off of all products)
= $9,000 * ($22.00 / ($21.00 + $23.00 + $22.00 + $24.00))
= $2,170 (rounded to the nearest dollar)

Therefore, the best choice is C.

Shiny Floors Company Shiny Floors Company Produces Four Floor Cleaners from the Same