Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8. Problem 17-27 Part 1 Required: 1. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to CBL Problem 17-27 Part 2 2. Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculat of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) = Joint cost allocated to MSB

Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8. Problem 17-27 Part 1 Required: 1. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to CBL Problem 17-27 Part 2 2. Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculat of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) = Joint cost allocated to MSB

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter25: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...

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Board-It, Inc., produces the following types of 2 4 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of 710 per batch. Using the physical units method, allocate the joint production cost to each product.
Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company incurred costs of $66,000. Product H weighs 44 pounds and product C weighs 66 pounds. Product H sells for $250 per pound and product C sells for $295 per pound. Based on a physical measure of output, allocate joint costs to products H and C.
! Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $430,000 and results in 73,000 units of MSB and 103,000 units of CBL. Each MSB sells for $7, and each unit of CBL sells for $9. Problem 17-27 Part 3 3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $500,200 per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $15 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $230,000 per production run.…
Joint Products Northwest Building Products (NBP) manufactures two lumber products from ajoint milling process: residential building lumber (RBL) and commercial building lumber (CBL).A standard production run incurs joint costs of $450,000 and results in 80,000 units of RBL and120,000 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit.Required1. Assuming that no further processing occurs after the split-off point, how much of the joint costs areallocated to commercial lumber (CBL) on a physical measure method basis?2. If no further processing occurs after the split-off point, how much of the joint cost is allocated to theresidential lumber (RBL) using a sales value at split-off method?3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 perproduction run. During this process, 10,000 units are unavoidably lost and have no value. The remainingunits of CBL are salable at $14 per unit. The RBL, although…
Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $486,000 and results in 86,400 units of RBL and 129,600 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit. Required: 1. Assuming that no further processing occurs after the split-off point, how much of the joint costs are allocated to commercial lumber (CBL) on a physical measure method basis? 2. If no further processing occurs after the split-off point, how much of the joint cost is allocated to the residential lumber (RBL) using a sales value at split-off method? 3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $324,000 per production run. During this process, 10,800 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although…
Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $531,000 and results in 94,400 units of RBL and 141,600 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit. Required: 1. Assuming that no further processing occurs after the split-off point, how much of the joint costs are allocated to commercial lumber (CBL) on a physical measure method basis? 2. If no further processing occurs after the split-off point, how much of the joint cost is allocated to the residential lumber (RBL) using a sales value at split-off method? 3. Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $354,000 per production run. During this process, 11,800 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable…
ABC Co. produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for ABC Co.'s operations for the current year are as follows: Product R J C с Units Produced 8,000 10,000 5,000 Allocated Joint Production Cost $32,000 40,000 20,000 Sales Value at Split-off $76,000 71,000 48,000 Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000. Required: Which products should be processed beyond the split-off point? Show all of your work. ABC Inc. produces three products. Data concerning the…
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