Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $8030. O $3290. $2030. Units Produced in lbs O $0. 24800 13100 3290 Units Sold in lbs 20500 11100 2030 Sale Price per lb $1.30 6.20 How much in joint costs should be allocated to the by-product, using the production method? 1.00
Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: Product Coconut Milk Coconut Meat Coconut Skin $8030. O $3290. $2030. Units Produced in lbs O $0. 24800 13100 3290 Units Sold in lbs 20500 11100 2030 Sale Price per lb $1.30 6.20 How much in joint costs should be allocated to the by-product, using the production method? 1.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut
Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and
another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero.
Information for production of the product is as follows:
Product
Coconut Milk
Coconut Meat
Coconut Skin
Units
Produced
in lbs
$8030.
$3290.
$2030.
$0.
24800
13100
3290
Units Sold
in lbs
20500
11100
2030
Sale Price
per lb
$1.30
6.20
1.00
How much in joint costs should be allocated to the by-product, using the production method?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11e85596-aef9-4139-88a8-c055efc85c9b%2Fb4ff8701-2fc3-4e3d-8cf5-3c1c3c6d5cbf%2F6f7ko5h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carla Vista produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut
Skin as a by-product. All three are produced from joint costs of $78800: direct materials amounting to $53500 and
another $25300 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero.
Information for production of the product is as follows:
Product
Coconut Milk
Coconut Meat
Coconut Skin
Units
Produced
in lbs
$8030.
$3290.
$2030.
$0.
24800
13100
3290
Units Sold
in lbs
20500
11100
2030
Sale Price
per lb
$1.30
6.20
1.00
How much in joint costs should be allocated to the by-product, using the production method?
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