LO.4 (By-product; net realizable value method) Weinberg Canning produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product...

Extracted text: LO.4 (By-product; net realizable value method) Weinberg Canning produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split-off or after further processing. In October 2010, the joint cost of the production process was $142,000. Product Pounds Produced Separate Cost Final Selling Price Fillet 18,000 $3.00 $16.00 Smoked 20,000 5.20 13.00 Remnants 2,000 0.30 1.50 a. The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off. Use the net realizable value method to account for the by-product. b. Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2,400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold. (Round cost per pound to the nearest penny.) LO.4 (Accounting for scrap) Hammatt Inc. provides a variety of services for com- mercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to 2010 operations: Budgeted operating overhead $415,200 Actual operating overhead $410,500 Budgeted net realizable value of recycled paper $9,200 Actual net realizable value of recycled paper $9,700 Budgeted billable hours 70,000 Actual billable hours 70,900 a. Assuming that number of billable hours is the allocation base, what was the com- pany's predetermined overhead rate? b. Record the journal entry for the sale of the recycled paper. c. What was the company's underapplied or overapplied overhead for 2010?