Question: Ibsen Company makes two products from a common input Joint processing costs up to the split off point total $45.000 a year. The company allocates

 Ibsen Company makes two products from a common input Joint processing

Ibsen Company makes two products from a common input Joint processing costs up to the split off point total $45.000 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 value after further processing $18.000 $ 20,000 $ 24,100 $37,600 Product V $ 27,000 $ 30.000 $ 18,40 $ 50, 100 $ 45,000 $50,00 $ 42,500 $ 95,700 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 Xifris to be sold at the split off point? d What is the minimum amount the company should accept for Product Yift is to be sold at the split off point? b Minimum acceptable amount d. Minimum acceptable amount

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