The Green Company produces fabrics. During the period, joint costs of processing were $125,000. Production and...
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The Green Company produces fabrics. During the period, joint costs of processing were $125,000. Production and sales value information for the period were as follows: Product Product A Product B Meters Produced 30,000 45,000 Separable Costs $25,000 $42,000 Product A sells for $2.25 per meter and Product B sells for $3.50 per meter. Required a. Allocate joint costs using the Net Realizable Value Method (round all final answers to the nearest dollar). b. The company can further process each product into other products. Identify which product should be sold at the split-off point and which product should be processed further to maximize company profits: a. Product A can be further processed for an additional separable cost of $5,000. The additional processing would result in a loss of 5,000 kilograms and each kilogram would sell for $3.75 each. b. Product B can be further processed which will result in a loss of 7,000 kilograms and further separable costs of $17,000. Each kilogram would sell for $4.00 each. The Green Company produces fabrics. During the period, joint costs of processing were $125,000. Production and sales value information for the period were as follows: Product Product A Product B Meters Produced 30,000 45,000 Separable Costs $25,000 $42,000 Product A sells for $2.25 per meter and Product B sells for $3.50 per meter. Required a. Allocate joint costs using the Net Realizable Value Method (round all final answers to the nearest dollar). b. The company can further process each product into other products. Identify which product should be sold at the split-off point and which product should be processed further to maximize company profits: a. Product A can be further processed for an additional separable cost of $5,000. The additional processing would result in a loss of 5,000 kilograms and each kilogram would sell for $3.75 each. b. Product B can be further processed which will result in a loss of 7,000 kilograms and further separable costs of $17,000. Each kilogram would sell for $4.00 each.
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Answer rating: 100% (QA)
a Allocate joint costs using the Net Realizable Value Method The Net Realizable Value NRV of a product is the estimated selling price of the final pro... View the full answer
Related Book For
Intermediate Algebra
ISBN: 9780134895987
13th Edition
Authors: Margaret Lial, John Hornsby, Terry McGinnis
Posted Date:
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