Академический Документы
Профессиональный Документы
Культура Документы
400,000.00
Cream
Liquid Skim
0
25000
20000
5000
8 $
0
75000
30000
45000
4
PANEL A: Allocation of Joint Costs Using Sales Value at Splitoff Method Cream Liquid Ski
Sales value of total production at splitoff point
(25,000 gallons $8 per gallon; 75,000 gallons $4 per gallon)
Weighting ($200,000 $500,000; $300,000 500,000)
Joint costs allocated (0.40 $400,000; 0.60 $400,000)
Joint production cost per gallon
($160,000 25,000 gallons; $240,000 75,000 gallons)
PANEL B: Product-Line Income Statement Using Sales Value at Splitoff Method for May 2
Revenues (20,000 gallons $8 per gallon; 30,000 gallons $4 per gallon)
Cost of goods sold (joint costs)
Production costs (0.40 $400,000; 0.60 $400,000)
Deduct ending inventory (5,000 gallons $6.40 per gallon; 45,000 gallons $3.20 per gallon)
Cost of goods sold (joint costs)
Gross margin $ 32,000 $ 24,000 $
Gross margin percentage ($32,000 $160,000; $24,000 $120,000; $56,000 $280,000)
Cream
$
Liquid Skim
$
200,000
0.40
160,000
300,000
0.60
240,000
6.40
3.20
Cream
Liquid Skim
Total
500000
400000
Total
160,000
120,000 $
280,000
160,000
240,000 $
400,000
$
$
32,000
128,000
$
$
144,000 $
96,000 $
176,000
224,000
32,000
20%
24,000 $
20%
56,000
20%
PANEL A: Allocation of Joint Costs Using Physical-Measure Method Cream Liquid Skim To
Physical measure of total production (gallons
Weighting (25,000 gallons 100,000 gallons; 75,000 gallons 100,000 gallons)
Joint costs allocated (0.25 $400,000; 0.75 $400,000)
Joint production cost per gallon ($100,000 25,000 gallons; $300,000 75,000 gallons)
PANEL B: Product-Line Income Statement Using Physical-Measure Method for May 2012
Revenues (20,000 gallons $8 per gallon; 30,000 gallons $4 per gallon)
Cost of goods sold (joint costs)
Production costs (0.25 $400,000; 0.75 $400,000)
Deduct ending inventory (5,000 gallons $4 per gallon; 45,000 gallons $4 per gallon)
Cost of goods sold (joint costs) 80,000
Gross margin
Gross margin percentage ($80,000 $160,000; $0 $120,000; $80,000 $280,000
Cream
Liquid Skim
25000
75000
0.25
0.75
100000
300000
4.00
4.00
Total
100000
Cream
Liquid Skim
160000
120000
Total
280000
100000
20000
80000
80000
50%
300000
180000
120000
0
0%
400000
400000
200000
200000
80000
28.57%
Joint Costs
Joint costs (costs of 110,000 gallons raw milk
and processing to splitoff point)
Separable cost of processing 25,000 gallons
cream into 20,000 gallons buttercream
Separable cost of processing 75,000 gallons
liquid skim into 50,000 gallons condensed milk
400,000.00
Cream
0
25000
25000
Liquid Skim
0
75000
75000
0
8
Buttercream
Condensed Milk
280,000
$
520,000
Buttercream
0
20000
Condensed Milk
0
50000
12000
8000
45000
5000
25 $
22
PANEL A: Allocation of Joint Costs Using Net Realizable Value Method Buttercream Cond
Final sales value of total production during accounting period
(20,000 gallons $25 per gallon; 50,000 gallons $22 per gallon)
Deduct separable costs
Net realizable value at splitoff point
Weighting ($220,000 $800,000; $580,000 $800,000)
Joint costs allocated (0.275 $400,000; 0.725 $400,000)
Production cost per gallon
([$110,000 + $280,000] 20,000 gallons; [$290,000 + $520,000] 50,000 gallons)
PANEL B: Product-Line Income Statement Using Net Realizable Value Method for May 20
Revenues (12,000 gallons $25 per gallon; 45,000 gallons 22 per gallon
Cost of goods sold
Joint costs (0.275 $400,000; 0.725 $400,000)
Separable costs
Production costs
Deduct ending inventory (8,000 gallons $19.50 per gallon; 5,000 gallons $16.20 per gallon)
Cost of goods sold
Gross margin
Gross margin percentage ($66,000 $300,000; $261,000 $990,000; $327,000 $1,290,000)
Buttercream
Condensed Milk
500,000 $
$
$
$
1,600,000
280,000 $
220,000 $
0.275
110,000 $
520,000 $
580,000 $
0.725
290,000 $
800,000
800,000
19.50
16.20
Buttercream
1,100,000
Total
Condensed Milk
400,000
Total
300,000 $
990,000
1,290,000
110,000 $
290,000
400,000
$
$
280,000 $
390,000 $
520,000
810,000
$
$
800,000
1,200,000
156,000 $
81,000
237,000
234,000 $
729,000
963,000
66,000 $
22.00%
261,000 $
26.36%
327,000
25.35%
PANEL A: Allocation of Joint Costs Using Constant Gross-Margin Percentage NRV Method
Step 1
Final sales value of total production during accounting period:
(20,000 gallons $25 per gallon) + (50,000 gallons $22 per gallon)
Deduct joint and separable costs ($400,000 + $280,000 + $520,000)
Gross margin
Gross margin percentage ($400,000 $1,600,000)
Step 2
Final sales value of total production during accounting period:
(20,000 gallons $25 per gallon; 50,000 gallons $22 per gallon) $
Deduct gross margin, using overall gross-margin percentage (25% $500,000; 25% $1,100,000
Total production costs
Step 3
Deduct separable costs
Joint costs allocated $
Total production costs of buttercream Total production of buttercream = $375,000 20,000 gall
Total production costs of condensed milk Total production of condensed milk = $825,000 50,0
Buttercream
$
$
$
Condensed Milk
Total
Condensed Milk
Total
1,600,000
1,200,000
400,000
25%
Buttercream
$
$
$
500,000 $
125,000 $
375,000 $
1,100,000
275,000
825,000
$
$
$
1,600,000
400,000
1,200,000
$
$
280,000 $
95,000 $
520,000
305,000
$
$
800,000
400,000
Buttercream
Condensed Milk
Total
300,000 $
990,000
1,290,000
$
$
$
95,000 $
280,000 $
375,000 $
305,000
520,000
825,000
$
$
$
400,000
800,000
1,200,000
$
$
$
150,000 $
225,000 $
75,000 $
25%
82,500 $
742,500 $
247,500 $
25%
232,500
967,500
322,500
25%