Question: Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $51,500 a year. The company allocates

Ibsen Company makes two products from a common input. Joint processing costs

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $51,500 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: my work Allocated joint processing costs eBook Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 30,900 $ 30,000 Product Y $ 20,600 Total $ 51,500 $ 23,200 $ 20,000 $ 17,500 $ 50,000 $ 40,700 $ 48,600 $ 56,300 $ 104,900 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? Note: 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 Y if it is to be sold at the split-off point? a. b. c. Minimum acceptable amount d. Minimum acceptable amount C

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