17. LO.3 (Allocating joint cost) Keiffer Production manufactures three joint pro

Question

17. LO.3 (Allocating joint cost) Keiffer Production manufactures three joint products in a single process. The following information is available for August 2010: Sales Value at Split-Off Cost after Final Selling Product Gallons per Gallon Split-Off Price JP-4539 4,500 $14 $4 $24 JP-4587 18,000 8 5 15 JP-4591 13,500 18 2 22 Allocate the joint cost of $558,000 to the production based on the a. number of gallons. b. sales value at split-off. c. approximated net realizable values at split-0ff. (Round all percentages to the nearest whole percentage.)

Explanation / Answer

JP4539

4500

.125

.125 X 558000

69750

JP4587

18000

.500

.500 X 558000

279000

JP4591

13500

.375

.375 X 558000

209250

36000

1000

558000

-============================================================================

JP4539

4500 X14

63000

.14 X 558000

78120

JP4587

18000X 8

144 000

.32 X 558000

178 560

JP4591

13500X18

243000

.54 X 558000

301320

450 000

558 000

=============================================================================================================

JP4539

4500 X(24-4)

90 000

.17 X 558000

94 860

JP4587

18000X (15-5)

180 000

.33 X 558000

184 140

JP4591

13500X(22-2)

270 000

.50 X 558000

279 000

540 000

558 000

JP4539

4500

.125

.125 X 558000

69750

JP4587

18000

.500

.500 X 558000

279000

JP4591

13500

.375

.375 X 558000

209250

36000

1000

558000

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