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Three Accounting Problems




Question;Problem 1 - Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and cannedtomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. Therewas no beginning or ending inventories for the summer. Production and sales value information for thesummer is as follows:ProductCasesSales Value atSplitoff PointSeparable Costs Selling PriceCatsup100,000$6 per case$3.00 per case$28 per caseJuice150,0008 per case5.00 per case25 per caseCanned200,0005 per case2.50 per case10 per caseQuestion: Determine the amount allocated to each product if the estimated net realizable value method isused, and compute the cost per case for each product. (10 points)Problem 2 - Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales valueinformation for the month is as follows:UnitsProducedSales Value atSplitoff PointTurpentine6,000 liters$60,000Paint thinner6,000 liters50,000Spot remover3,000 liters25,000ProductQuestion: Determine the amount of joint cost allocated to each product if the physical-measure method isused. (10 points)Problem 3 - Oregon Lumber processes timber into four products. During January, the joint costs ofprocessing were $280,000. There was no inventory at the beginning of the month. Production and salesvalue information for the month is as follows:Sales Value atProductBoard feetSplitoff PointEnding Inventory2 x 4's6,000,000$0.30 per board foot500,000 bdft.2 x 6's3,000,0000.40 per board foot250,000 bdft.4 x 4's2,000,0000.45 per board foot100,000 bdft.Slabs1,000,0000.10 per board foot50,000 bdft.Question: Determine the value of ending inventory if the sales value at splitoff method is used for productcosting. Round to three decimal places when necessary. (10 points)


Paper#39089 | Written in 18-Jul-2015

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