A company manufactures three products using the same production process. The costs incurred up to the...
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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Number of Units Produced Selling Price at Split-off Selling Price after Processing Additional Processing Costs Product X 4,700 $11.00 $16.00 $13,160 Y 9,400 11.90 16.50 19,740 Z 3,760 19.70 21.90 11,280 Which product(s) should be processed further and which should be sold at the split-off point? ✓ should be processed further but should be sold at the split-off point. A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Number of Units Produced Selling Price at Split-off Selling Price after Processing Additional Processing Costs Product X 4,700 $11.00 $16.00 $13,160 Y 9,400 11.90 16.50 19,740 Z 3,760 19.70 21.90 11,280 Which product(s) should be processed further and which should be sold at the split-off point? ✓ should be processed further but should be sold at the split-off point.
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Solution X and Y should be processed further but Z should be sold at ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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