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HAVING PROBLEMS WITH THIS QUESTION. Use the following information to answer the

ID: 2498024 • Letter: H

Question

HAVING PROBLEMS WITH THIS QUESTION.

Use the following information to answer the questions:

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $28,000 per ton, one-fourth of which is allocated to product X15. 6,000 units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $10.00 each, or processed further at a total cost of $11,000 and then sold for $13.33 each.

Required:

What is the profit or loss from additional processing? (A loss amount should be entered as a negative number.)

Use the following information to answer the questions:

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $28,000 per ton, one-fourth of which is allocated to product X15. 6,000 units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $10.00 each, or processed further at a total cost of $11,000 and then sold for $13.33 each.

Required:

What is the profit or loss from additional processing? (A loss amount should be entered as a negative number.)

Explanation / Answer

Product X15 Units Cost Allocated costs@ split-off 6000 7000 Further Processing costs 11000 Total cost 6000 18000 Profit foregone(60000-7000) 53000 Total cost 71000 Total sales value@ 13.33 6000 79980 Profit on sale 8980