A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period,unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues wereproduced.Product Sales ValueFeed $ 90,000Flour 110,000Starch 20,000Total $ 220,000How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediatepercentage to the nearest whole percent.)Multiple Choice$0.$98,400.$90,000.$133,333.$240,000.A company has sales of $109,000; cost of goods sold of $69,870; and total direct expenses of $7,620. The department'contribution to overhead is:Multiple Choice$101,380.$77,490.$62,250.$31,510.$39,130.Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of officeexpenses are allocated to the two operating departments using different allocation bases. The following information isavailable for the current period:Office Expenses TotalSalaries$ 45,000Allocation BasisNumber of employeesDepreciation 23,000 Cost of goods soldAdvertising 46,000 Percentage of total salesDepartment Number of employees Sales Cost of goods soldDrilling 1,400$ 344,000 $98,800Grinding516,000161,200Total$860,000 $ 260,0002,100$22,000.$18,000.3,500The amount of salaries that should be allocated to Drilling for the current period is:Multiple Choice$45,000.$27,000.$29,800.

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A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced. Product Sales Value Feed $ 90,000 Flour 110,000 Starch 20,000 Total $ 220,000 How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.) Multiple Choice $0. $98,400. $90,000. $133,333. $240,000.

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced. Product Sales Value Feed $ 90,000 Flour 110,000 Starch 20,000 Total $ 220,000 How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.) Multiple Choice $0. $98,400. $90,000. $133,333. $240,000.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $ 140,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per pound Feed 110, 000 $ 0.80 Flour 50,000 2.20 Starch 20,000 1.10 How much of the $140,000 cost should be allocated to flour if the value basis is used?
The Toowoomba Produce Suppliers packages and distributes three grades of animal feed. The material cost per tonne and estimated annual sales for each of the products are: Product Material cost Estimated sales Super Premium $16 1000 tonnes Premium $12 1500 tonnes Economy $10 2500 tonnes The indirect cost of operating the machinery used to package all three products is $20 000 per year. In the past, prices have been set by allocating the indirect costs to products on the basis of estimated sales in tonnes. The resulting total costs (material costs plus allocated fixed overhead) are then marked up by 100 per cent. a. allocate total indirect cost to each product. b. Determine the total cost for each product. c. Calculate the selling price per unit for each product, using the method described for setting prices. d. Does the price in part C, take into account how much customers are willing to pay for the product? explain.
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Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
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