Chapter 11: Applying Excel
Data
Exhibit 11-7 Santa Maria Wool Cooperative
Cost of wool	$200,000
Cost of separation process	$40,000
Sales value of intermediate products at split-off point:
Undyed coarse wool	$120,000
Undyed fine wool	$150,000
Undyed superfine wool	$60,000
Costs of further processing (dyeing) intermediate products:
Undyed coarse wool	$50,000
Undyed fine wool	$60,000
Undyed superfine wool	$10,000
Sales value of end products:
Dyed coarse wool	$160,000
Dyed fine wool	$240,000
Dyed superfine wool	$90,000
Enter a formula into each of the cells marked with a ? below
Example: Joint Product Costs and the Contribution Approach
Analysis of the profitability of the overall operation:
Combined final sales value		?
Less costs of producing the end products:
Cost of wool	?
Cost of separation process	?
Combined costs of dyeing	?	?
Profit		?
Analysis of sell or process further:
	Coarse	Fine	Superfine
	Wool	Wool	Wool
Final sales value after further processing	?	?	?
Less sales value at the split-off point	?	?	?
Incremental revenue from further processing	?	?	?
Less cost of further processing (dyeing)	?	?	?
Financial advantage (disadvantage) of further processing	?	?	?