Jim Davis Company processes hogs into three products,chops,bacon and sausage.Production and selling price data follow: Hogs are processed in the Processing Department.From the split-off point,bacon is smoked,sliced and packaged in the Bacon Department.The cost incurred for these processes was $100,000.In addition,sausage was ground and formed into patties in the Sausage Department after the split-off.This process cost $60,000.
Required:
a)If joint processing costs were $1,500,000,calculate the total cost of each product using the adjusted sales value method.
b)Prepare the journal entries to 1)record the joint processing and movement of product out of the Processing Department after the split off,and 2)record the additional processing and completion of the bacon and sausage.

Question

Jim Davis Company processes hogs into three products,chops,bacon and sausage.Production and selling price data follow:  Hogs are processed in the Processing Department.From the split-off point,bacon is smoked,sliced and packaged in the Bacon Department.The cost incurred for these processes was $100,000.In addition,sausage was ground and formed into patties in the Sausage Department after the split-off.This process cost $60,000.
Required:
a)If joint processing costs were $1,500,000,calculate the total cost of each product using the adjusted sales value method.
b)Prepare the journal entries to 1)record the joint processing and movement of product out of the Processing Department after the split off,and 2)record the additional processing and completion of the bacon and sausage.

Quizplus · Accepted Answer

The Answer of Jim Davis Company processes hogs into three products,chops,bacon and sausage.Production and selling price data follow:  Hogs are processed in the Processing Department.From the split-off point,bacon is smoked,sliced and packaged in the Bacon Department.The cost incurred for these processes was $100,000.In addition,sausage was ground and formed into patties in the Sausage Department after the split-off.This process cost $60,000.
Required:
a)If joint processing costs were $1,500,000,calculate the total cost of each product using the adjusted sales value method.
b)Prepare the journal entries to 1)record the joint processing and movement of product out of the Processing Department after the split off,and 2)record the additional processing and completion of the bacon and sausage.

Jim Davis Company Processes Hogs into Three Products,chops,bacon and Sausage