Solution Exhibit 6.15
6.16
Estimated net realisable value method, byproducts.
(30 min)
1 ab For the month of November 2011, Flori-Dante’s output (in kg) was
• sliced apple
89,100
• applesauce apple juice
67,500
• animal feed
27,000 These amounts were calculated as follows
Product Input kg Proportion Total kg Kilograms lost Net kg Slices Sauce Juice Feed
270,000 270,000 270,000 270,000 0.33 0.30 0.27 0.10 1.00 89,100 81,000 72,900 27,000 270,000
–
–
5,400
–
5,400 89,100
*
81,000
*
67,500
*
Net kg
=
72,900 − (0.08 × net kg)
1.08 net kg
=
72,900
Net kg
=
67,500
Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5 th Edition, Instructor’s Manual © Pearson Education Limited 2012 b The estimated net realisable value for each of the three main products is calculated below Product Net kg Price Revenue Separable Costs Estimated net realisable value Slices Sauce Juice 89,100 81,000 67,500 €0.80 0.55 0.40 €71,280 44,550 27,000 €142,830 €11,280 8,550 3,000 €22,830 €60,000 36,000 24,000 €120,000 Share with your friends: |
