Stahl Inc. produces three separate products from a common process costing $101,0

Question

Stahl Inc. produces three separate products from a common process costing $101,000. Each of the products can be sold at the split-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.

Determine total net income if all products are sold after further processing.

Sales Value
at Split-Off
Point Cost to
Process
Further Sales Value
after Further
Processing Product 10 $60,900 $100,500 $189,100 Product 12 15,200 30,500 34,700 Product 14 54,700 150,900 215,000

Explanation / Answer

Determine the total net income if all products are sold after further processing.

$ 189100 + 34700 + 2150000 - 101,000 - 100,500 - 30,500 - 150,900 = $

net income

1990900

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