Stahl Inc. produces three separate products from a common process costing $100,3

Question

Stahl Inc. produces three separate products from a common process costing $100,370. Each of the products can be sold at the spit-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Split-Off Product 10 Product 12 Product 14 $60,695 15,893 55,202 $100,166 30,435 149,212 $190,180 34,147 215,974 Your answer is incorrect. Try again. Determine total net income if all products are sold at the split-off point. Net income LINK TO TEXT Your answer is incorrect. Try again. Determine total net income if all products are sold after further processing. Nat innnma

Explanation / Answer

a)Total sales revenue at split off = 131790                        [60695+15893+55202]

Less:cost at seperation point    100370

Net income at split off : 31420

b) Total sales value after split off = 440301         [190180+34147+215974]

Total further processing cost =279813               [100166+30435+149212]

Net income if all are sold after further procesing = 440301-279813 - 100370 = 60118

c)

d) Net income : Net income after further processing for product 10 +Income at split off for 12 + Income after processing for 14   -common cost

            = (190180-100166) + 15893 +(215974-149212)- 100370

           = 90014+ 15893 +66762-100370

             = 72299

e) Yes net income increased by (72299 - 60118 ) = 12181

Product 10 12 14 Sale value after split off 190180 34147 215974 less:Sale value at split off 60695 15893 55202 Further processing cost 100166 30435 149212 Net income /(loss) 29319 -12181 11560 Process further or not yes no yes

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