3.) Sweet Mandarines processes different types of mandarines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value at Allocated Joint Cost to Process Sales Value of Split-Off point Costs Further Processed Product Larco $200,000 $40,000 $110,000 $330,000 Marco 300,000 60,000 75,000 400,000 Narco 400,000 80,000 250,000 600,000 Determine whether each of the three joint products should be sold as is, or processed further.

3.) Sweet Mandarines processes different types of mandarines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value at Allocated Joint Cost to Process Sales Value of Split-Off point Costs Further Processed Product Larco $200,000 $40,000 $110,000 $330,000 Marco 300,000 60,000 75,000 400,000 Narco 400,000 80,000 250,000 600,000 Determine whether each of the three joint products should be sold as is, or processed further.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter25: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...

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