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castortr0y [4]
2 years ago
10

Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for

the revenues from its by-product sales as other income. Additional information follows:
M1 M2 B1 Total
Units produced 25,400 13,700 10,000 49,100
Allocated joint costs ? ? ? $ 375,000
Sales value at split-off $ 402,000 $ 268,000 $ 91,000 $ 761,000


Required:

Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product M1? (Do not round intermediate calculations.)
Business
1 answer:
NikAS [45]2 years ago
3 0

The joint cost allocated to product M1 using the net realizable value is $198,095.

<h3>What is the joint cost?</h3>

Joint costs refer to the common production costs (direct materials, direct labor, and overheads) incurred to produce two or more products during the same process.

Based on this, the different products have a common costs that should be allocated based on some criteria.

<h3>Data and Calculations:</h3>

                                                M1              M2              B1           Total

Units produced                  25,400       13,700       10,000       49,100

Allocated joint costs                ?                 ?                ?      $ 375,000

Sales value at split-off $ 402,000  $ 268,000  $ 91,000 $ 761,000

Joint cost of M1 using the net realizable value = $198,095 ($402,000/$761,000 x $375,000)

Thus, the joint cost allocated to product M1 using the net realizable value is $198,095.

Learn more about joint costs at brainly.com/question/25408525

#SPJ1

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Answer:

(a) $4,040

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(c) $348

(d) $3,265

Explanation:

(a) Calculate the following: The future value of lump-sum investment of $3,200 in four years that earns 6 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A.1 or the Garman/Forgue companion website.) Round Future value of a Single Amount in intermediate calculations to four decimal places. $

To estimate this, the formula for calculating future value is used as follows:

FV = PV * (1 + r)^n ………………………….. (1)

Where,

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FV = $3,200 * (1 + 0.06)^4

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FV = $3,200 * 1.2625

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(b) The future value of $1,100 saved each year for three years that earns 4 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places. $

To calculate this, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

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(c) A person who invests $1,800 each year finds one choice that is expected to pay 4 percent per year and another choice that may pay 7 percent. What is the difference in return if the investment is made for four years? Round your answer to the nearest dollar. (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places. $

To do this, we first calculate the return of each of the 2  investments by using the the formula for calculating the Future Value (FV) of an Ordinary Annuity in part b above is used as follows:

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Where;

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Substituting the values into equation (2), we have:

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Where;

FV at 7% = Future value of the return after 4 years =?

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Substituting the values into equation (2), we have:

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(d) The amount a person would need to deposit today with a 7 percent interest rate to have $4,000 in three years. Round your answer to the nearest dollar. (Hint: Use Appendix A.2 or the Garman/Forgue companion website.) Round Present value of a Single Amount in intermediate calculations to four decimal places. $

To estimate this, the formula for calculating present value is used as follows:

PV = FV / (1 + r)^n ………………………….. (1)

Where;

PV = Present value or amount to deposit today = ?

FV = future value in three years = $4,000

r = interest rate = 7%, or 0.07

n = number of years = 3

Substitute the values into equation (1) to have:

PV = $4,000 / (1 + 0.07)^3

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PV = $3,265

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