A. ALENBONG Company produces line of different products which comes from the COMMON INPUT in a joint processing operation. The company incurs joint processing that costs of P200,000 per year up to the split off point. These joint costs are distributed to the three (3) products based on their total sales value at the split off point: P100,000 for product A., P180,000 for product B, and P120,000 for products C. Product A, B, C may be sold at split -off point or may be processed further. Xt costs of further processing the products and their sales value thereafter are shown below: PRODUCT FURTHER PROCESSING COSTS SALES VALUE P 70,000 80,000 24,000 P 160,000 300,000 А. В. C. 150,000 REQUIRED: From the above data show your computations which product or products should be sold at the split off point, and which should be processed further

A. ALENBONG Company produces line of different products which comes from the COMMON INPUT in a joint processing operation. The company incurs joint processing that costs of P200,000 per year up to the split off point. These joint costs are distributed to the three (3) products based on their total sales value at the split off point: P100,000 for product A., P180,000 for product B, and P120,000 for products C. Product A, B, C may be sold at split -off point or may be processed further. Xt costs of further processing the products and their sales value thereafter are shown below: PRODUCT FURTHER PROCESSING COSTS SALES VALUE P 70,000 80,000 24,000 P 160,000 300,000 А. В. C. 150,000 REQUIRED: From the above data show your computations which product or products should be sold at the split off point, and which should be processed 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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Icy Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs 22400 19600 42000 Sales value at split-off point 32,000 28,000 60,000 Costs of further processing 11600 25,300 36,900 Sales value after further processing 40,800 54,200 95,000 Required:a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? b) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? c) What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?d) What is the minimum amount the company…
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Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $51,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 20,400 $ 20,000 $ 23,300 $ 38,800 > Answer is complete but not entirely correct. a. Financial disadvantage b. Financial advantage c. Minimum acceptable amount d. Minimum acceptable amount Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should…
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $27,300 $ 18,200 $ 45,500 Sales value at split-off point $ 30,000 $20,000 $50,000 Costs of further processing $ 24,200 $ 18,500 $ 42,700 Sales value after further processing $ 47,800 $58,300 $ 106,100 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d.…
Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be Isold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Product X Product Y Total $ 16,800 $16,800 $33,600 $24,000 $24,000 $ 48,000 $33,700 Costs of further processing $ 15,000 $18,700 Sales value after further processing $35,500 $ 45,100 $80,600 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point? O $20,500 ($3,500) $3,700 $27,700
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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?
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 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 A B с Product A $ 24.00 per pound $ 18.00 per pound $ 30.00 per gallon 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: B C Additional Processing Costs $ 81,150 $ 117,125 $ 52,900 Quarterly Output 13,800 pounds 21,500 pounds 5,000 gallons Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on…
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