Question: Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,600 a year. The company allocates these
Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,600 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: Product X Product Y Total Allocated joint processing costs $ 18,800 $ 29,800 $ 48,600 Sales value at split-off point $ 25,850 $ 37,800 $ 63,650 Costs of further processing $ 23,300 $ 17,600 $ 40,900 Sales value after further processing $ 48,800 $ 56,500 $ 105,300 Required: a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.) Net $ b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.) Net $ c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? (Omit the "$" sign in your response.) Minimum acceptable amount $ d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? (Omit the "$" sign in your response.) Minimum acceptable amount $ My work for A &B A) 48800-25850= 22950 - 23300 = -350 Disadvantage B) 56500 - 37800= 18700 - 17600 = 1100 C) My textbook does not help solve this D)My textbook does not help solve this
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