MC Qu. 37 Harmon Inc. produces joint products L, M, ... Harmon Inc. produces joi
ID: 2427840 • Letter: M
Question
MC Qu. 37 Harmon Inc. produces joint products L, M, ...
Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $75,000 was as follows:
The amount of joint costs allocated to product N using the net realizable value method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
$3,614.
$4,688.
$23,438.
$33,434.
$46,875.
L M N Total Separable Processing cost $10,000 $25,000 $2,000 $37,000 Units Produced 1,200 2,500 4,300 8,000 Sales Value (after addt’l processing) $60,000 $50,000 $7,000 $117,000Explanation / Answer
PARTICULARS L M N total sales price 60000 50000 7000 117000 separate cost 10000 25000 2000 37000 net realizable value 50000 25000 5000 80000 distribution ratio (NET REALIZABLE VALUE METHOD) 62.5000% 31.2500% 6.2500% JOINT COST ALLOCATION 46875 23438 4688 75000
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