Nate Company manufactures Products A and B from a joint process that also yields a by-product,X.Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products.Additional information is as follows:
(1)Assuming that joint product costs are allocated using the relative sales value at split-off approach,what was the joint cost allocated to Products A and B?
(2)Prepare the journal entry to transfer the finished products to separate inventory accounts.
(3)Assuming the sales value of X is stable,prepare the journal entries to:
(a)place the by-product in stock
(b)record the sale of 3,000 units for $10,500 on account.

Question

Nate Company manufactures Products A and B from a joint process that also yields a by-product,X.Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products.Additional information is as follows:  ​
(1)Assuming that joint product costs are allocated using the relative sales value at split-off approach,what was the joint cost allocated to Products A and B?
(2)Prepare the journal entry to transfer the finished products to separate inventory accounts.
(3)Assuming the sales value of X is stable,prepare the journal entries to:
(a)place the by-product in stock
(b)record the sale of 3,000 units for $10,500 on account.

Quizplus · Accepted Answer

The Answer of Nate Company manufactures Products A and B from a joint process that also yields a by-product,X.Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products.Additional information is as follows:  ​
(1)Assuming that joint product costs are allocated using the relative sales value at split-off approach,what was the joint cost allocated to Products A and B?
(2)Prepare the journal entry to transfer the finished products to separate inventory accounts.
(3)Assuming the sales value of X is stable,prepare the journal entries to:
(a)place the by-product in stock
(b)record the sale of 3,000 units for $10,500 on account.

Nate Company Manufactures Products a and B from a Joint