Whitehead Corporation manufactures three different tires that use the same joint process. Each tire can be...
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Whitehead Corporation manufactures three different tires that use the same joint process. Each tire can be sold as is or processed further to create an upgraded tire. The joint process costs $30,000. Information for the three products is as follows: Product P225/70R P265/65R P275/65R Units Produced 5,600 10,000 2,500 Price per unit at Split-Off $70 $90 $120 If Processed Further Final price Further per unit Processing Costs $80 $120 $145 $15 $20 $22 If joint costs are allocated based on the NRV, which tire, or tires, should be processed further and which ones should be sold at split-off. Show all supporting calculations. (round to the nearest whole dollar) LO: 3 Whitehead Corporation manufactures three different tires that use the same joint process. Each tire can be sold as is or processed further to create an upgraded tire. The joint process costs $30,000. Information for the three products is as follows: Product P225/70R P265/65R P275/65R Units Produced 5,600 10,000 2,500 Price per unit at Split-Off $70 $90 $120 If Processed Further Final price Further per unit Processing Costs $80 $120 $145 $15 $20 $22 If joint costs are allocated based on the NRV, which tire, or tires, should be processed further and which ones should be sold at split-off. Show all supporting calculations. (round to the nearest whole dollar) LO: 3
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P22570R NRV 80 x 5600 120 x 10000 145 x 2500 2144000 Allocation o... View the full answer
Related Book For
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
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