Questions from Management Accounting

Q: Archibald Ltd manufactures and sells one product. Its budgeted profit statement

Archibald Ltd manufactures and sells one product. Its budgeted profit statement for the first month of trading is as follows: The budget was prepared using absorption costing principles. If budgeted p...

Q: Miljø-Såpe AS produces two joint products, cooking oil and

Miljø-Såpe AS produces two joint products, cooking oil and soap oil, from a single vegetable oil refining process. In July 2018, the joint costs of this process were NOK 24 000000. Separable processin...

Q: Pohjanmaan Oy processes an ore in Department 1, out of which

Pohjanmaan Oy processes an ore in Department 1, out of which come three products, L, W and X. Product L is processed further through Department 2. Product W is sold without further processing. Product...

Q: Flori-Dante Srl grows, processes, packages and sells three

Flori-Dante Srl grows, processes, packages and sells three joint apple products: (a) sliced apples that are used in frozen pies, (b) apple sauce, and (c) apple juice. The apple peel, processed as anim...

Q: Joint product/by-product distinctions, ethics (continuation of

Joint product/by-product distinctions, ethics (continuation of Exercise 6.16) (20–30 minutes) Flori-Dante classifies animal feed as a by-product. The by-product is inventoried at its selling price whe...

Q: A company simultaneously produces three products (X, Y and Z

A company simultaneously produces three products (X, Y and Z) from a single process. X and Y are processed further before they can be sold; Z is a by-product that is sold immediately for $6 per unit w...

Q: Jerónimos Ltda produces two products, turpentine and methanol (wood alcohol

Jerónimos Ltda produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to €120 000 per batch of output. Each batch totals 40 000 litres: 25% methanol and...

Q: Schmidsendl GmbH buys crude vegetable oil. Refining this oil results in

Schmidsendl GmbH buys crude vegetable oil. Refining this oil results in four products at the split-off point: A, B, C and D. Product C is fully processed at the split-off point. Products A, Band D can...

Q: Protomastoras SA produces three products: Alpha, Beta and Gamma.

Protomastoras SA produces three products: Alpha, Beta and Gamma. Alpha and Gamma are joint products and Beta is a by-product of Alpha. No joint costs are to be allocated to the by product. The product...

Q: Dinamica Lda is planning to replace one of its production lines,

Dinamica Lda is planning to replace one of its production lines, which has a remaining useful life of 10 years, book value of €9 million, a current disposal value of €5 million, and a neglegible termi...