Question: Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $43,000 a year. The company allocates these
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $43,000 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: Allocated joint processing costs Sales value at split off point Costs of further processing Sales valde after further processing Product X $ 25,800 $ 30,000 $ 23,000 $ 48,200 Product Y $ 17,200 $ 20,000 $ 17,300 $ 55,900 Total $.43,000 $ 50,000 $ 40,300 $184,100 Required: a. 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 Yint is to be sold at the split-off point? alinancial disadvantago binancial advantage Minimum acceptable amount d. Minimum acceptable amount $ $ 16,800) 19 400 25,800 10.400
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