spin-off point total $365,000 per querter For financial reporting purposes, the
ID: 2409851 • Letter: S
Question
spin-off point total $365,000 per querter For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales velue at the split-off point. Unit selling prices and total output at the split-off point are as follows Company manufectures three products from a common input in a joint processing operation. Joint processing costs up to the Belling Price A 23.00 per pound 13,600 pounds S17.00 per pound 21,200 pounds Output 29.00 per Each product can be processed further after the split-off point Additional processing requires no special facilitles. The additional processing costs (per querter) and unit selling prices after further processing are given below Selling 28.40 per pound 23.40 per pound Pint 30,560 37.40 per gallon Required: 1 whet is the francial advantage (dsadvantage) of further processing each of the three products beyond the split-off point? products should be processed further? on your analysis In requirement 1, which product or products should be sold at the split-off point and which product or Complete this question by entering your answers in the t tabs below Required 2 ) of further processing each of the three products beyond the split-off a negative value.) cPre Next >Explanation / Answer
Calculate financing advantage (disadvantage)
Analysis :
Product A Product B Product C Sale price after further processing 28.40 23.40 37.40 Sale price at split off point 23 17 29 Incremental sale price 5.4 6.40 8.40 Quantity 13600 21200 4800 Incremental sales revenue 73440 135680 40320 Incremental cost -78540 -113230 -50560 Incremental profit (loss) -5100 22450 -10240Related Questions
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