Exercise 11-28 Name:
Insert your answers in the gray-shaded cells of columns D and F. Enter
amounts to be subtracted as negatives. Enter answers as formulas where
appropriate. If an answer is incorrect, the word “wrong” will appear.
a. Joint cost 142,000$
Less NRV of by-product (2,400)
Joint cost to be allocated 139,600$
Amount Percent
NRV of Fillet 234,000 60%
NRV of Smoked 156,000 40%
Total NRV 390,000$ 100%
Cost allocation:
Fillet 83,760$
Smoked 55,840
Total cost allocation 139,600$
b. Separate cost for Fillet 54,000$
Separate cost for Smoked 104,000$
Fillet Smoked
Joint costs 83,760$ 55,840$
Separate costs 54,000 104,000
Total costs 137,760$ 159,840$
Divided by pounds 18,000 20,000
Unit costs 7.65$ 7.99$
Inventory values:
Fillet 30,600$
Smoked 19,176
Remnants 420
Total inventory value 50,196$
Solution