Question: Ibsen Company makes two products from a common input. Joint processing costs up to the split off point total $49.000 a year. The company allocates
Ibsen Company makes two products from a common input. Joint processing costs up to the split off point total $49.000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the spill-off point. Each product may be sold at the split off point or processed further Data concerning these products appear below. Product & Product Metal Allocated joint processing costs $19,600 $ 29,400 $ 49,000 Sales value at split off point $ 20,000 5.30,000 550.000 Costs of further processing $ 24,900 $19,200 $44,100 Sales value after further processing $3,200 5.59,700 $9,000 Required: What is inancial advantage (disadvantage of processing Product X beyond the spirit of polnt? (Negative amount should be indicated by a minus sign.) bWhat 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 if it is to be sold at the split off point? d. What is the minimum amount the company should accept for Product Yil it is to be sold at the split off point? Minimum acceptable amount d Minimum acceptable amount
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
