Question: Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $50,500 a year. The company allocates these

 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 $50,500 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. Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 30.300 $ 30.000 $ 23,400 $49.000 Product $ 20,200 $ 20,000 $ 17,700 $ 56,700 Total $ 50, 500 $50,000 $61.100 $105,700 Required: a. What is fnancial 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 if it is to be sold at the split-off point? Minimum acceptable amount M

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