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Presentation/PPT
27/08/2022
Required:
Compute the total costs of the production departments, after the support department costs of information technology and human resources have been allocated using the step-down method?
What other methods can be used to allocate support department costs? Explain the differences in the available methods
Assume that all the work on the IT department could be outsourced to an independent company for $97.50 per hour. If Nakheel Sports no longer operated its own IT department, 30% of the fixed costs of the IT department could be eliminated. Should Nakheel Sports outsource its IT services?
Question 3
The Rows Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October:
Direct Materials processed: 130,000 gallons (shrinkage was 10%)
Production: condensed goat milk 52,200 gallons
skim goat milk 64,800 gallons
Sales: condensed goat milk $3.50 per gallon
skim goat milk $2.50 per gallon
The costs of purchasing the 130,000 gallons of unprocessed goat milk and processing it up to the splitoff point to yield a total of 117,000 gallons of salable product was $144,480. There were no inventory balances of either product.
Condensed goat milk may be processed further to yield 39,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon. Xyla can be sold for $18 per gallon.
Skim goat milk can be processed further to yield 56,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances.
Required:
Compute Rows Company income for Xyla and Skim Goat Ice Cream when joint costs are allocated using:
Net Realizable Value Method
Sales Value at Split-off point
please I want the solution for the whole question.
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