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ashly138 ashly138
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7 years ago
Blue Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows:

      Sales Value at
Product   Kilograms Produced    splitoff Point   Separable Costs
Paper   130,000   $80,000   $224,000
Cardboard   108,000   70,000   264,000

Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram.

There were no beginning inventories for January but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard.

Required:
Prepare a product line income statement in gross margin format. Joint costs are allocated using the net realizable value method assuming all available product is sold.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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btpsandbtpsand
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ashly138 Author
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7 years ago
Brilliant ツ
nadiia
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Yesterday
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jodie1
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2 hours ago
Helped a lot
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