BLEND Inc. manufactures three joint products and allocates joint costs at its relative sales value at split-off
Question:
BLEND Inc. manufactures three joint products and allocates joint costs at its relative sales value at split-off point. The following joint product costs were incurred for the current period:
Raw Materials 180,000 Direct labor 120,000 Factory overhead 200,000
The following production data were provided by BLEND Inc. for the current period.
Product Name Units Produced Selling price at split off point Additional Processing Cost Final Selling price
Uno 10,000 20.00 50,000 24 Dos 20,000 15.00 60,000 18 Tres 40,000 12.50 100,000 16
Required
What is the total gross/(loss) for the current period if BLEND Inc. will correctly process further the proper items?
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ