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ACCT 344 Week 5 Homework......................(ACCT 344 Cost Accounting - DeVry)

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1. Question: Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs \$4,000 and results in 100 units of I and 400 units of II. To be ready for sale, both products must be processed further, incurring separable costs of \$1 per unit for I and \$2 per unit for II. The market price for Product I is \$20 and for Product II is \$15.;Required;a. Allocate joint production costs to each product using the physical units method.;b. Allocate joint production costs to each product using the net realizable value method.;c. Allocate joint production costs to each product using the constant gross margin percentage method.;2. Question: Mike's Meats incurs costs of \$4,000 while processing raw chicken meat into three products: breasts, wings, and thighs. The meat is then sold to local grocery stores based on the following?????..;Required: (Calculate relative quantity to three decimal points.);a. Determine the cost and gross profit percentage for each type of chicken using the physical units method of joint cost allocation.;b. Repeat part (a) using the sales-value-at-split-off method of joint cost allocation.;c. The company has an opportunity to sell wings to local restaurants for \$1.00 per pound but additional packaging is required, which will cost \$300 per 1,000 lb. Assuming the physical unit method is used to allocate joint costs, should the offer be accepted?

Paper#80272 | Written in 18-Jul-2015

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