Weston Company makes two products from a common input Joint processing costs up to the split off point total $49,600 a year The company allocates these costs to the joint product 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 $19,200 $30,400 $49,600 Sales value at split off point $24,000 $38,000 $62,000 Cost of further processing $23,700 $18,000 $41,700 Sales value after further processing $46,800 $57,300 $104,100 1 What is the net monetary advantage(disadvantage) of processing Product X beyond the split off point 2 What is the net monetary advantage (disadvantage) of processing Product Y beyond the split off point 3 What is the minimum amount the company should accept for Product X if it is to be sold at the split off point 4 What is the minimum amount the company should accept for Product Y if it is to be sold at the split off point

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

Question: Weston Company makes two products from a common input. Joint processing costs up to the split-off point total $49,600 a year. The company allocates these

Weston Company makes two products from a common input. Joint processing costs up to the split-off point total $49,600 a year. The company allocates these costs to the joint product 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	$19,200	$30,400	$49,600
Sales value at split-off point	$24,000	$38,000	$62,000
Cost of further processing	$23,700	$18,000	$41,700
Sales value after further processing	$46,800	$57,300	$104,100

1. What is the net monetary advantage(disadvantage) of processing Product X beyond the split-off point?

2. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

3. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

4. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

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!

Meadow Construction, Inc. is a home builder in Arizona. Meadow uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled...

help) Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $42,500 a year. The company allocates these costs to the joint products on the basis of...

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $51,300 a year. The company allocates these costs to the joint products on the basis of...

bsen Company makes two products from a common input. Joint processing costs up to the splitoff point total $48,500 a year. The ompany allocates these costs to thejoint products on the basis of their...

Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 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 $51,500 a year. The company allocates these costs to the joint products on the basis of...

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...

12:12 .. 3G Search X Final Assessment_ACCT603_51 202... a. Gazi Corporation produces three products. Data concerning the selling prices and unit costs of the three products appear below: Product...

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...

A 120-mm-radius pulley of mass 5 kg is attached to a 30-mm-radius shaft which fits loosely in a fixed bearing. It is observed that motion of the pulley is impending if a 0.5-kg mass is added to block...

Two measures of health care are the mean number of people per physician, and the percentage of the population who reside fewer than 5 km from a physician. In the table below, the 10 provinces are...

Consider the following independent events: a. Gain on sale of an asset b. Increase in accounts receivable c. Decrease in prepaid insurance d. Amortization expense e. Increase in accounts payable f....

Imagine yourself in the Digital Marketing department at Coca - Cola. Your manager has asked you to compare the impact of two Coca - Cola digital marketing campaigns, and also assess the impact of a...

Identify ways to increase your selfesteem.

2. Some people can benefit from multiple mentors. What other types of mentors, in addition to Professor Zubofff and her husband, might Edward find helpful?

3. When asked for advice for future entrepreneurs, Vickie Stringer said, Be patient, allow room for growth, build your company on a strong accounting system, and as always, dare to dream. How does...