Chapter 16. Cost Allocation: Joint Products and Byproducts
16-16 1. a. $15.34 b. $11 2. Sales value at splitoff method
16-17 1. Breasts $5.0625 W $0.49 T $1.29 Bones $0.3065 F $0.06
2. Breasts $4.4835 Thighs $1.1418
16-18 Corn Syrup $260,000 Corn Starch $65,000
16-19 1. M $30,000 T $90,000 2. M $40,000 T $80,000
3. PM: M $15,000 T $0 Estimated NRV: M $5000 T $10,000
4. WA $60,000 T $60,000 Yes
16-20 1. a. X $108,000; $72,000 Y $24,000; $136,000 Z $13,000; $247,000
b. X $135,000; $90,000 Y $30,000; $170,000 Z $8,750; $166,250
2. a. X 60% Y 60% Z 25.71% b. X 50% Y 50% Z 50.00%
16-21 1. a. CO $270 NGL $90 NG $1,440 Total $1,800
b. CO $1,136.25 NGL $290.25 NG $373.50 Total $1,800
2. a. CO $2,255 NGL $555 NG $(610) Total $2,200
b. CO $1,388.75 NGL $354.75 NG $456.50 Total $2,200
16-22 1. a. B 50% S 42% T 44% b. B 41% S 45% T 44%
c. B 46.7% S 43.2% T 44.1%
16-23 1a. C $278 S $222 1b. C $375 S $125
16-24 1. Pro $288,000 Sales $284,000 2. Pro: Main product $88,000; Byproduct $12,000
Sales: Main product $96,000; Byproduct $0
16-25 1. A $7.24 B $1.31 C $1.95
2. A $7.45 B $1.36 C $1.69
16-26 1. Inv Cost: Main product $360 Byproduct $12 GM: $1,320
2. Inv Cost: Main product $375 Byproduct $0 GM: $1,323
16-27 1. a. SA 25% SB 5% C 50% SD (4.17%)
b. SA 13.33% SB 0% C 80% SD 16.67%
c. SA 16.67% SB 10% C 50% SD 12.5%
2. OI can be increased by $50,000 if both B and D are sold at splitoff.
16-28 1. a. C $10,500; M $19,500 b. C $12,000 M $18,000
c. C $9,375 M $20,625 d. C $9,330 M $20,670
2. a. C 3.125% M 10.294% T 8% b. C (3.125)% M 13.235% T 8%
c. C 7.812% M 8.088% T 8% d. C 8% M 8% T 8%
3. Yes
16-29 1. a. S $461,539 D $230,769 P $307,692
b. S $750,000 D $50,000 P $200,000
c. S $444,445 D $259,259 P $296,296
2. Further processing of decorative pieces adds $50,000
16-30 1. a. Butter $4,000 Buttermilk $16,000
b. Butter $8,000 Buttermilk $12,000
c. Butter $12,000 Buttermilk $8,000
d. Butter $10,625 Buttermilk $9,375
16-31 1. 2. 3. Decision not affected by method of joint allocation
16-32 1. Inv: A $4,375 B $2,625 GM: A $35,625 B $21,375
2. Inv: A $6,250 B $3,750 GM: A $33,750 B $20,250
16-33 1. i) At time of production: dr. WIP Inventory $10,000
dr. FG Inventory – Coal Tar $3,000
dr. FG Inventory – Grade A $4,375
ii) At time of sale: dr. Cash or AR $3,000
dr. Cash or AR $64,000
dr. CGS – Grade A $4,375
16-34 1. Continue to sell bulk raw coal without further processing. Incremental loss $(5,500,000) = Incremental rev $68,400,000 – Incremental costs $73,900,000
2. Cost of producing raw coal is irrelevant to this decision.
3. Further process coal fines if incremental income is at least $12.22 per ton.
16-35 1. Inv: Main product $3,500 Byproduct $1,000 GM $94,000
2. Inv: Main product $5,000 Byproduct $0 GM $94,500
1. 3a. i) At time of production: dr. WIP Inventory $25,000
cr. WIP Inventory $7,500
cr. WIP Inventory $17,500
ii) At time of sale: cr. FG Inv - Scarves $6,500
cr. Sales rev - Blouses $108,000
cr. FG Inv - Blouses $14,000
16-36 1. Joint costs allocated: a. D $18,194 S $5,806 b. D $18,276 S $5,724
c. D $16,000 S $8,000 The NRV method
2. Should process standard modules into DRAM modules.
Cost Accounting 13e Check Figures