Ryan Company Ryan Company manufactures products X and Y from a joint process that also yields a by-product,Z.Revenue from sales of Z is treated as a reduction of joint costs.Additional information is as follows:

Products

X Y Z Total

Units produced 20,000 20,000 10,000 50,000

Joint costs ? ? ? $262,000

Sales value at

split-off $300,000 $150,000 $10,000 $460,000

Joint costs were allocated using the sales value at split-off approach. Refer to Ryan Company.The joint costs allocated to product Y were A)$ 84,000 B)$100,800. C)$150,000. D)$168,000.

Question

Ryan Company
Ryan Company manufactures products X and Y from a joint process that also yields a by-product,Z.Revenue from sales of Z is treated as a reduction of joint costs.Additional information is as follows:

		Products
	X	Y	Z	Total
Units produced	20,000	20,000	10,000	50,000
Joint costs	?	?	?	$262,000
Sales value at
split-off	$300,000	$150,000	$10,000	$460,000

Joint costs were allocated using the sales value at split-off approach. Refer to Ryan Company.The joint costs allocated to product Y were A)$ 84,000 B)$100,800. C)$150,000. D)$168,000.

Quizplus · Accepted Answer

The joint costs allocated to product Y are calculated by taking the proportion of Y's sales value at split-off to the total sales value at split-off and applying it to the total joint costs. Y's sales value is $150,000, and the total sales value is $460,000. The proportion is $150,000/$460,000 = 0.3261. Applying this to the total joint costs of $262,000 gives $262,000 * 0.3261 = $85,333.20, which rounds to $84,000.

Ryan Company Ryan Company Manufactures Products X and Y from a Joint