Davenport Company Buys Alpha 11 For 6 A Golion At The End Of Distilling In Department A Alpha 11 Splits Off Into Thre 1 (33.52 KiB) Viewed 23 times
Davenport Company Buys Alpha 11 For 6 A Golion At The End Of Distilling In Department A Alpha 11 Splits Off Into Thre 2 (25.53 KiB) Viewed 23 times
Davenport Company buys Alpha-11 for $6 a golion. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta 1. Beta-2, and Beta-3. Davenport sells Beta-1 at the split-off point, with no further processing; it processes Beta 2 and Beta-3 further before they can be sold. Beta-2 is fused in Department B, and Beto-3 is solidified in Department C. Following is a summary of costs and other related data for the year ended November 30. Department (1) Distilling (2) Fusing (3) Solidifying cost of Alpha-11 $720,000 0 6 Direct labor 180,000 5337,500 5487,500 Manufacturing over head 150,000 157.500 405,000 Products Gallons sold Gallons on hand at year-end Sales Beta-1 150,000 120,000 $225,000 Beta-2 Beta-3 360,000 540,000 0 180,000 $720,000 $1,063, 125 Davenport had no beginning inventories on hand at December 1 and no Alpha-11 on hand at the end of the year on November 30. All gallons on hand on November 30 were complete as to processing. Davenport uses the net realizable value method to allocate joint costs
Required: Compute the following: a. The net realizable value of Beta-1 for the year ended November 30. b. The joint costs for the year ended November 30 to be allocated. c. The cost of Beta-2 sold for the year ended November 30, (Do not round Intermediate calculations.) d. The value of the ending inventory for Beta-1. (Do not round Intermediate calculations.) a b Net realizable value of Beta-1 Joint costs Cost of Beta-2 sold Ending inventory for Beta-1 $ 375,000 $ 1,050,000 $ 705,000 C. d.
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