Question

Exercise 20-10 (Part Level Submission) Stahl Inc. produces three separate products from a common process costing $100,600. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $59,300 $100,500 $190,500 Product 12 15,600 29,100 34,100 Product 14 54,500 150,700 214,100 Collapse question part (a) Determine total net income if all products are sold at the split-off point. Net income $

Answer 1

(a) Net Income (Split Off Point) = Sales Value at Split off point - Common Process Cost

= ($59,300 + $15,600 + $54,500) - $100,600

= $28,800