STEP BY STEP EXPLANATION PLEASE. Question 1 - Sell / Process FurtherPipeman Inc. has a joint process that produces three separate products: Product A, Product B andProduct C. Each product may be sold at split-off or processed further and then sold. Joint processingcosts for a year amount to $90,000. Other relevant data are as follows:ProductABCSales Valueat Split-Off$60,00015,00055,000Costs afterSplit-Off$110,00050,000125,000Sales Valueat Completion$190,00035,000215,000Required:a) Determine total net income if all products are sold at split-off point.b) Determine total net income if all products are sold after further processing.c) Using incremental analysis determine which products should be sold at split-off point and whichshould be processed further.d) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.e) What is the decision rule in deciding whether to sell a product or process it further?

1.At split off point, Joint cost to each product should be apportioned to each product in the ratio…

a) Determine total net income if all products are sold at split-off point. b) Determine total net income if all products are sold after further processing. c) Using incremental analysis determine which products should be sold at split-off point and should be processed further. d) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decisio e) What is the decision rule in deciding whether to sell a product or process it further?

a) Determine total net income if all products are sold at split-off point. b) Determine total net income if all products are sold after further processing. c) Using incremental analysis determine which products should be sold at split-off point and should be processed further. d) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decisio e) What is the decision rule in deciding whether to sell a product or process it further?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Current Attempt in Progress A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E Your answer is partially correct. F (b1) Number of Units Produced Incremental profit (loss) 4,350 5,530 1,900 Product D Selling Price at Split-Off $10.10 $ 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product E Additional Processing Costs $ $16,995 21,509 10,790 Product F $
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ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
1. 2. Product A B C. EXERCISE 6-7 Sell or Process Further Decisions L06-7 Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: sino Inpage onu gosos mamos orli blund? Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: maba aris pailless box TODO BA Jim 5 00. Product A. B C. Selling Price $16 per pound $8 per pound $25 per gallon Additional Processing Costs Quarterly Outper 15,000 pounds 20,000 pounds 4,000 gallons $63,000 $80,000 $36,000 Selling Price eidinson…
hi i have a question that answered incorrectly will you please help Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price QuarterlyOutput A $ 16 per pound 15,000 pounds B $ 8 per pound 20,000 pounds C $ 25 per gallon 4,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product AdditionalProcessingCosts SellingPrice A $ 63,000 $ 20 per pound B $ 80,000 $ 13 per pound C $ 36,000 $ 32 per gallon…
ABC Co. produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for ABC Co.'s operations for the current year are as follows: Product R J C с Units Produced 8,000 10,000 5,000 Allocated Joint Production Cost $32,000 40,000 20,000 Sales Value at Split-off $76,000 71,000 48,000 Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000. Required: Which products should be processed beyond the split-off point? Show all of your work. ABC Inc. produces three products. Data concerning the…