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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 35
Net Realizable Value Method
A company processes a patented chemical, D-12, and produces two outputs, C-30 and C-40. In March, the costs to process D-12 are $225,000 for materials and $450,000 for conversion costs. C-30 has a sales value of $1,000,000 and C-40 has a sales value of $250,000.
Required
Using the net realizable value method, assign costs to C-30 and C-40 for March.
A company processes a patented chemical, D-12, and produces two outputs, C-30 and C-40. In March, the costs to process D-12 are $225,000 for materials and $450,000 for conversion costs. C-30 has a sales value of $1,000,000 and C-40 has a sales value of $250,000.
Required
Using the net realizable value method, assign costs to C-30 and C-40 for March.
Explanation
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Joint Cost is the cost incurred when 2 o...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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