Iaukea Company makes two products from a common input. Joint processing costs up

Question

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

Required:

What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.)

What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.)

Product X Product Y Total   Allocated joint processing costs $ 18,800    $ 29,800    $ 48,600      Sales value at split-off point $ 25,850    $ 37,800    $ 63,650      Costs of further processing $ 23,300    $ 17,600    $ 40,900      Sales value after further processing $ 48,800    $ 56,500    $ 105,300   

Explanation / Answer

product x

sales after 48800

sales before 25850

sales increase 22950

cost after 23300

loss= 350

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