Question: A company manufactures three products using the same production process. The costs incurred up to the split-off point are $ 193,600. These costs are allocated

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $ 193,600. 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 follows. Product Number of Units Produced 4,090 6,170 Selling Price at Split-off $10.40 11.80 19.80 Selling Price after Processing $14.60 15.90 22.60 Additional Processing Costs $11,178 17,327 7,424 1,680 (61) Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product D Product E Product F Incremental profit (loss) J (6000) (12)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
