It's mind-boggling the number of products that are made with cotton. From salad dressing, to T-shirts, to diapers, to animal seed, the possibilities are practically endless. Here is just one combination of products that could be produced from raw cotton, along with a variety of ways the manufacturer could allocate costs between the products. Let's start with the joint cleaning and separation process, which allows for the cotton seed and the lint to be separately identifiable. The following quantities of cotton seed and lint were produced for a total cost (including the raw cotton and processing costs) of $222,000. 399,000 pounds of cotton seed 301,000 pounds of lint (fiber) Both of these products can be sold at this point, or they can be processed further. In their present state, they're worth: $0.13 per pound for cotton seed $0.75 per pound for lint This particular company presses the cotton seed to make oil and uses the lint to make thread. The additional costs and processes generate higher sales values for the final products, as follows. Seed/Oil Lint/Thread Additional cost $20,000 $83,900 Final sales value $80,000 $317,000 (a) (b) (c) Allocate the joint process costs using the physical quantities method. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Seed Share of joint cost $ Lint $
It's mind-boggling the number of products that are made with cotton. From salad dressing, to T-shirts, to diapers, to animal seed, the possibilities are practically endless. Here is just one combination of products that could be produced from raw cotton, along with a variety of ways the manufacturer could allocate costs between the products. Let's start with the joint cleaning and separation process, which allows for the cotton seed and the lint to be separately identifiable. The following quantities of cotton seed and lint were produced for a total cost (including the raw cotton and processing costs) of $222,000. 399,000 pounds of cotton seed 301,000 pounds of lint (fiber) Both of these products can be sold at this point, or they can be processed further. In their present state, they're worth: $0.13 per pound for cotton seed $0.75 per pound for lint This particular company presses the cotton seed to make oil and uses the lint to make thread. The additional costs and processes generate higher sales values for the final products, as follows. Seed/Oil Lint/Thread Additional cost $20,000 $83,900 Final sales value $80,000 $317,000 (a) (b) (c) Allocate the joint process costs using the physical quantities method. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Seed Share of joint cost $ Lint $
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 1EA: Moisha is developing material standards for her company. The operations manager wants grade A...
Related questions
Question
![It's mind-boggling the number of products that are made with cotton. From salad dressing, to T-shirts, to diapers, to
animal seed, the possibilities are practically endless. Here is just one combination of products that could be produced
from raw cotton, along with a variety of ways the manufacturer could allocate costs between the products.
Let's start with the joint cleaning and separation process, which allows for the cotton seed and the lint to be separately
identifiable. The following quantities of cotton seed and lint were produced for a total cost (including the raw cotton
and processing costs) of $222,000.
399,000 pounds of cotton seed
301,000 pounds of lint (fiber)
Both of these products can be sold at this point, or they can be processed further. In their present state, they're worth:
$0.13 per pound for cotton seed
$0.75 per pound for lint
This particular company presses the cotton seed to make oil and uses the lint to make thread. The additional costs and
processes generate higher sales values for the final products, as follows.
Seed/Oil
Lint/Thread
Additional cost
$20,000
$83,900
Final sales value $80,000
$317,000
(a)
(b)
(c)
Allocate the joint process costs using the physical quantities method. (Round proportion to 2 decimal places,
e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)
Seed
Share of joint cost $
Lint
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d3dd4f1-61da-4996-a074-37740b3f5edd%2F1edc3ceb-77cb-4f4d-b9b7-31a2adb422ff%2Fmxxtpa_processed.png&w=3840&q=75)
Transcribed Image Text:It's mind-boggling the number of products that are made with cotton. From salad dressing, to T-shirts, to diapers, to
animal seed, the possibilities are practically endless. Here is just one combination of products that could be produced
from raw cotton, along with a variety of ways the manufacturer could allocate costs between the products.
Let's start with the joint cleaning and separation process, which allows for the cotton seed and the lint to be separately
identifiable. The following quantities of cotton seed and lint were produced for a total cost (including the raw cotton
and processing costs) of $222,000.
399,000 pounds of cotton seed
301,000 pounds of lint (fiber)
Both of these products can be sold at this point, or they can be processed further. In their present state, they're worth:
$0.13 per pound for cotton seed
$0.75 per pound for lint
This particular company presses the cotton seed to make oil and uses the lint to make thread. The additional costs and
processes generate higher sales values for the final products, as follows.
Seed/Oil
Lint/Thread
Additional cost
$20,000
$83,900
Final sales value $80,000
$317,000
(a)
(b)
(c)
Allocate the joint process costs using the physical quantities method. (Round proportion to 2 decimal places,
e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)
Seed
Share of joint cost $
Lint
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning