physical quantities method the following questions relate to kyle company which manu 691201
Physical Quantities Method
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $126,000. Additional information follows:
|
|
|
|
If Processed Further |
|
|
|
Units |
Sales Value |
Sales |
Additional |
|
Product |
Produced |
at Split Off |
Values |
Costs |
|
KA |
56,000 |
$160,000 |
$220,000 |
$36,000 |
|
KB |
40,000 |
140,000 |
180,000 |
28,000 |
|
KC |
16,000 |
100,000 |
160,000 |
20,000 |
Required
a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $36,000 if processed further)?
b. Assuming that joint product costs are allocated using the sales value at split off (net realizable value method), what was the total cost of product KB (including the $28,000 if processed further)?