JP company processes, in a joint production process, the manufacturing of two main products, XI and...

 

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JP company processes, in a joint production process, the manufacturing of two main products, XI and X2 and of a by-product Y. The manufacturing process is the following: Raw material A is converted in section 1, where the intermediate product 1, the by-product Y and the product X1 are obtained. The intermediate product 1 is converted in section 2, where the product X2 is manufactured. The company began its activity in May year N. Regarding this month, the following data are known: a) Consumption of raw material A: 2 000 € b) Conversion costs Section 1: 9 200 € c) Production and sales Section 2: 3 000 € Description Product X1 Product X2 By-product Y d) Other data: . . Production 1 000 un. 4 000 un. 400 un. Sales 800 un. 4 000 un. 400 un. Unit selling price 5€ 6€ 2€ Product X1 supports distribution costs of 2 € / un. The by-product Y supports distribution costs of 1 € / un. The administrative costs are fixed and amount to 5 870 € There are no opening stocks It is required, regarding the month under analysis (you can use as supporting tables, the file Excel - Part II): 1. Calculate the MCFP of the by-product. 2. Calculate the MCFP of each main product, using the Net Realizable Value Method. 3. Present the Profit & Loss statement per functions and per products. JP company processes, in a joint production process, the manufacturing of two main products, XI and X2 and of a by-product Y. The manufacturing process is the following: Raw material A is converted in section 1, where the intermediate product 1, the by-product Y and the product X1 are obtained. The intermediate product 1 is converted in section 2, where the product X2 is manufactured. The company began its activity in May year N. Regarding this month, the following data are known: a) Consumption of raw material A: 2 000 € b) Conversion costs Section 1: 9 200 € c) Production and sales Section 2: 3 000 € Description Product X1 Product X2 By-product Y d) Other data: . . Production 1 000 un. 4 000 un. 400 un. Sales 800 un. 4 000 un. 400 un. Unit selling price 5€ 6€ 2€ Product X1 supports distribution costs of 2 € / un. The by-product Y supports distribution costs of 1 € / un. The administrative costs are fixed and amount to 5 870 € There are no opening stocks It is required, regarding the month under analysis (you can use as supporting tables, the file Excel - Part II): 1. Calculate the MCFP of the by-product. 2. Calculate the MCFP of each main product, using the Net Realizable Value Method. 3. Present the Profit & Loss statement per functions and per products.

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1 MCFP of the byproduct Revenues Variable costs Quantity Revenues Selling price Quantity Variable co... View the full answer