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Garrison Co.

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Question

Garrison Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the

split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison’s production policy follow.

 UnitsSales Value atIf Processed FurtherProductProducedSplit OffSales ValueAdditional Costsx6,000 $40,000 $80,000 $1,200 y3,000  15,000  40,000  3,000 z1,000  16,000  30,000  1,500 

The amount of joint costs allocated to product X using the net realizable value method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

 
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Barstow Manufacturing Company

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Question

Barstow Manufacturing Company has two service departments — product design and engineering support, and two

production departments — assembly and finishing. The distribution of each service department’s efforts to the other departments is shown below:

FROMTO DesignSupportAssemblyFinishingDesign 0% 10% 30% 60%Support 20% 0% 45% 35%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

  Design$140,000 Engineering Support$160,000 Assembly$550,000 Finishing$840,000 

The total cost accumulated in the finishing department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

 
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costs

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Question

The most relevant factor in deciding how or which costs should be assigned to an SBU is the degree of: />Multiple Choice
Causality.
 Reliability.
 Avoidability.
 Controllability.

 
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Order-filling costs

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Question

Order-filling costs:Multiple Choice

 
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