Cost Accounting (Processing beyond split-off and cost


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Cost Accounting (Processing beyond split-off and cost allocations) All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process in 2010 is $123,200. Per Unit Incremental Units of Selling Price Processing Final Sales Product Output at Split-Off Cost Price Honey butter 10,000 4.00 $3.00 $ 6.00 Honey jam 20,000 6.40 4.00 14.00 Honey syrup 1,000 3.00 0.40 3.60 Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product. a. Determine which products should be processed beyond the split-off point. b. Assume honey syrup should be treated as a by-product. Allocate the joint cost based on units produced, weight, and sales value at split-off. Use the net realizable value method in accounting for the by-product. (Round to nearest whole percentage.) Super_Morning_Fox5
posted a question ยท Sep 22, 2015 at 7:42am

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