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Author Question: Cola Drink Company processes direct materials up to the split-off point where two products, A and B, ... (Read 107 times)

tingc95

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on: Mar 6, 2021
Cola Drink Company processes direct materials up to the split-off point where two products, A and B, are obtained. The following information was collected for the month of July:



Direct materials processed:3500 liters (with 15% shrinkage) 
Production:A2100 liters
B875 liters 
Sales:A$40.00 per liter 
B$35.00 per liter 

The cost of purchasing 3500 liters of direct materials and processing it up to the split-off point to yield a total of 2975 liters of good products was $7000. There were no inventory balances of A and B. 

Product A may be processed further to yield 2000 liters of Product Z5 for an additional processing cost of $160. Product Z5 is sold for $60.00 per liter. There was no beginning inventory and ending inventory was 125 liters. 

Product B may be processed further to yield 800 liters of Product W3 for an additional processing cost of $290. Product W3 is sold for $65 per liter. There was no beginning inventory and ending inventory was 25 liters. 

What is Product Z5's estimated net realizable value at the split-off point?
◦ $51,840
◦ $83,840
◦ $119,840
◦ $120,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by tingc95 on Mar 6, 2021

mjenn52

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tingc95

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Reply 2 on: Mar 6, 2021
Wow, this really help

parker125

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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