Page 1 Quiz – Chapter 13-2 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1-3 BELOW. The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. The following material was collected for the month of January. There was no beginning inventory. Direct materials processed: 250,000 gallons (242,500 gallons of good product) Production: Mr. DirtOut 147,500 gallons Mr. SinkClean 95,000 gallons Sales: Mr. DirtOut 140,500 at $110 per gallon Mr. SinkClean 91,000 at $ 100 per gallon The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $380,000. 1. What are the physical-volume proportions to allocate joint costs for Mr. DirtOut and Mr. SinkClean, respectively? A 59.00% and 41.00% B 60.82% and 39.18% C 39.18% and 60.82% D 59.79% and 40.21% 2. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean? A $231,116 and $148,884 B $224,200 and $155,800 C $227,202 and $152,798 D $230,626 and $149,374 3. When using the physical-volume method, what is Mr. DirtOut's approximate production cost per unit? A $1.52 B $1.54 C $1.57 D $1.61Page 2 THE FOLLOWING INFORMATION APPLIES TO THE QUESTIONS 4-6 BELOW. The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 65,000 gallons (shrinkage was 10%) Production: condensed goat milk 26,100 gallons skim goat milk 32,400 gallons Sales: condensed goat milk $3.50 per gallon skim goat milk $2.50 per gallon The costs of purchasing the 65,000 gallons of unprocessed goat milk and processing it up to the split off point to yield a total of 58,500 gallons of salable product was $72,240. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 19,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon. Xyla can be sold for $18 per gallon. Skim goat milk can be processed further to yield 28,100 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances. 4. What is the estimated net realizable value of the Condensed Goat Milk at the splitoff point (assuming that it is processed into Xyla)? A $182,650 B $252,900 C $292,500 D $351,000 5. What is the estimated net realizable value of the Skim Goat Milk at the splitoff point (assuming that it is processed into ice cream)? A $182,650 B $252,900 C $110,200 D $85,450 6. Using estimated net realizable value, what amount of the $72,240 of joint costs would be allocated Xyla and the skim goat ice cream? A $41,971 and $30,269 B $44,471 and $27,769 C $32,796 and $39,444 D $36,120 and $36,120Page 3 Answer Key – Quiz – Chapter 13-2 1 B 2 A 3 C 4 C 5 A 6
View Full Document
Unlocking...