Product X and Y are made from a common input Joint processing costs up to the split off point total $48,900 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 Product X Product Y Total Allocated joint processing costs $ 19,100 $ 29,800 $ 48,900 Sales value at split off point $ 26,000 $ 37,950 $ 63,950 Costs of further processing $ 23,600 $ 17,900 $ 41,500 Sales value after further processing $ 49,400 $ 57,100 $ 106,500 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 (Negative amount should be indicated by a minus sign ) A financial advantage or disadvantage input amount B financial advantage or disadvantage input amount

The Answer is in the image, click to view ...

Question: Product X and Y are made from a common input. Joint processing costs up to the split-off point total $48,900 a year. The company allocates

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $48,900 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:

	Product X		Product Y		Total
Allocated joint processing costs	$	19,100	$	29,800	$	48,900
Sales value at split-off point	$	26,000	$	37,950	$	63,950
Costs of further processing	$	23,600	$	17,900	$	41,500
Sales value after further processing	$	49,400	$	57,100	$	106,500

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? (Negative amount should be indicated by a minus sign.)

A. financial advantage or disadvantage...input amount

B. financial advantage or disadvantage...input amount

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A test is given to a sample of 100 students. Suppose the test scores are 25, 64, . 35. Calculations show that 25 + 64 +...+ 35 = 3,900 and 252 + 642 +.+352 = 166,356. The standard deviation is...

Larson, Inc. has received a request for a special order of 8,500 units of product A276 for $45.40 each. The normal unit product cost of product A276 is as follows: Direct materials Direct labor...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,400 a year. The company allocates these costs to the joint products on the basis of their...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $47,000 a year. The company allocates these costs to the joint products on the basis of their...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $50,100 a year. The company allocates these costs to the joint products on the basis of their...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $48,500 a year. The company allocates these costs to the joint products on the basis of their...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,900 a year. The company allocates these costs to the joint products on the basis of their...

Task One (Keep or Drop a Product Line) The most recent monthly income statement for Benner Stores is given below: Total Store A Store B Sales $1,000,000 $400,000 $600,000 Variable expenses 580,000...

Task Five (Sell or Further Process) Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to...

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...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $48,500 a year. The company allocates these costs to the joint products on the basis of...

Adjusting journal entries at December 31, 2022: 1. Depreciation expense on the equipment for December has been correctly calculated to be $145. 2. Based on a year-end count, there was $155 worth of...

Your company now has more than 60 employees. The controller has been handling all of the HR functions including administration of the companys benefits. The benefits package includes health, dental,...

The gain on disposal of fixed assets consists of the accounting gain on the sale of some land on May 3 1 , 2 0 2 4 , and the sale of a limited life license ( see details below ) . XYZ LTD . purchased...

How would we like to see ourselves?

8. I accept that others cannot make me angry without my full cooperation. In other words, I control my anger.

4. When verbally attacked, I allow for the probability that the attack is prompted by pain or fear.