Author Question: Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two ... (Read 47 times)

nelaaney · **on:** Mar 6, 2021

Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year:

Direct materials processed:

400 kgs (Both standard and premium chips weigh 20 grams each)

Production:

Standard

13,000 chips

Premium

7400 chips

Sales:

Standard

12,600 at $190 per chip

Premium

7000 at $240 per chip

The cost of purchasing 400 kgs of direct materials and processing it up to the split-off point to yield a total of 20,400 chips of good products was $2,020,000. Beginning inventories totalled 130 chips for Standard and 60 chips for Premium. Ending inventory amounts reflected 130 chips of Standard and 60 chips of Premium. October costs per unit were the same as November. What are the physical-volume proportions for products Standard and Premium, respectively?
◦ 64.29% and 35.71%
◦ 66.33% and 33.67%
◦ 63.73% and 36.27%
◦ 50.00% and 50.00%

Li Jun · **Reply #1 on:** Mar 6, 2021

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