Question: 12 Ibsen Company makes two products from a common input Joint processing costs up to the split-off point total $47,500 a year. The company allocates
12 Ibsen Company makes two products from a common input Joint processing costs up to the split-off point total $47,500 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. 837 points Allocated joint processing costs Sales value at split off point Costs of further processing Sales value after further processing Product x $ 28,500 $ 30,000 $ 24,600 $ 48,600 Product y $ 19,000 $ 20,000 $ 18,900 $ 59,100 Total $ 47,500 $ 50,000 $ 43,500 $107,700 8020 Required: 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. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? Reference C Minimum acceptable amount d. Minimum acceptable amount
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