Joint Products The Bean Company provides fresh coffee beans for restaurants, hotels, and otherfood service companies. Bean offers three types of coffee beans: Premium, Gourmet, and Quality.Each of the three coffees is produced in a joint process in which beans are cleaned and sorted. Thesorting process is the split-off point in this joint process, and the output is the three types of beans.The beans can be sold at the split-off point or processed further, with different types of roastingand additional sorting. The additional processing requires additional, separable processing costs, asshown next. Separable processing requires no special facilities, and the production costs of furtherprocessing are entirely variable and traceable to the products involved. Last year all three productswere processed beyond split-off. Joint production costs for the year were $90,000,000. Sales valuesand costs needed to evaluate Bean’s production policy follow:Premium Gourmet Quality TotalPounds produced 10,000,000 12,000,000 2,000,000 24,000,000Separable processing cost $9,000,000 $7,000,000 $5,000,000 $21,000,000Pounds sold 10,000,000 12,000,000 2,000,000 24,000,000Total joint cost $90,000,000Sales price/pound (after additionalprocessing)$7.00 5.00 $2.00Sales price at split-off 5.00 4.00 1.00Required1. Determine last year’s unit cost and unit gross profit for each product assuming Bean allocates joint production costs using the physical measure method.2. Determine unit cost and unit gross profit for each product if Bean allocates joint costs using the salesvalue at split-off method.3. Which of The Bean’s products should be processed further?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Joint Products The Bean Company provides fresh coffee beans for restaurants, hotels, and other
food service companies. Bean offers three types of coffee beans: Premium, Gourmet, and Quality.
Each of the three coffees is produced in a joint process in which beans are cleaned and sorted. The
sorting process is the split-off point in this joint process, and the output is the three types of beans.
The beans can be sold at the split-off point or processed further, with different types of roasting
and additional sorting. The additional processing requires additional, separable processing costs, as
shown next. Separable processing requires no special facilities, and the production costs of further
processing are entirely variable and traceable to the products involved. Last year all three products
were processed beyond split-off. Joint production costs for the year were $90,000,000. Sales values
and costs needed to evaluate Bean’s production policy follow:
Premium Gourmet Quality Total
Pounds produced 10,000,000 12,000,000 2,000,000 24,000,000
Separable
Pounds sold 10,000,000 12,000,000 2,000,000 24,000,000
Total joint cost $90,000,000
Sales price/pound (after additional
processing)
$7.00 5.00 $2.00
Sales price at split-off 5.00 4.00 1.00
Required
1. Determine last year’s unit cost and unit gross profit for each product assuming Bean allocates joint production costs using the physical measure method.
2. Determine unit cost and unit gross profit for each product if Bean allocates joint costs using the sales
value at split-off method.
3. Which of The Bean’s products should be processed further?
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