Homework Answers
Answer- Products PLA and JOS would be more profitable for the Big Three Corp. to process further rather than sell at the split-off point.
Explanation- The financial disadvantages of processing Product LUC beyond the split-off point is= $1000.
The financial advantages of processing Product PLA beyond the split-off point is=$3000.
The financial advantages of processing Product JOS beyond the split-off point is=$700.
| Statement Of Financial advantage (disadvantage) | |||||
| Product | Sale value at Split-Off-Point | Sale value of processed product | Incremental sale | Cost to further process | Incremental profit/(loss) |
| $ | $ | $ | $ | $ | |
| (a) | (b) | (c=b-a) | (d) | (e=c-d) | |
| LUC | 1000 lb.*$16 per lb. =16000 | 1000 lb.*$20 per lb. =20000 | 4000 | 5000 | -1000 |
| PLA | 1000 lb.*$12 per lb. =12000 | 1000 lb.*$18 per lb. =18000 | 6000 | 3000 | 3000 |
| JOS | 1000 lb.*$5 per lb. =5000 | 1000 lb.*$14 per lb. =14000 | 9000 | 2000 | 7000 |
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#11. The Big Three Corporation manufactures three products (LUC, PLA, and JOS) from a joint process....
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Profit from Processing Further Deaton Corporation manufactures products A, B, and from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows: Total Units produced 12,000 8,000 4,000 24,000 Joint costs $144,000 $60,000 $36,000 $240,000 Sales value before additional processing 240,000 100,000 60,000 400,000 Additional costs for further processing 28,000 20,000 12,000 60,000 Sales value if processed further 280,000 120,000 70,000 470,000 ....
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Sell or Process Further Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B С Selling Price $25 per pound $19 per pound...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 13,800 pounds 21,500 pounds Product Selling Price A 24.00 per pound s 18.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 14.00 per pound 11,800 pounds B $ 8.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price $ 16 per pound B $ 8 per pound C $ 25 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a
joint processing operation. Joint processing costs up to the
split-off point total $330,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling peices and total output at the split-off point are as
follows:
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $305,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price $ 11.00 per pound $ 5.00 per pound $ 17.00 per gallon Quarterly...
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $395,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows Quarterly Output 14,800 pounds ProductSelling Price A 29.00 per pound 14 8 $ 23.08 per pound...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $300,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling prices and total output at the split-off point are as
follows:
Product Selling Price $ 10.00 per pound $ 4.00 per pound $ 16.00 per gallon Quarterly...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling prices and total output at the split-off point are as
follows:
Product
Selling Price
Quarterly
Output
A
$
16
per pound
15,000
pounds
B
$
8
per...
Profit from Processing Further Deaton Corporation manufactures products A, B, and from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows: Total Units produced 12,000 8,000 4,000 24,000 Joint costs $144,000 $60,000 $36,000 $240,000 Sales value before additional processing 240,000 100,000 60,000 400,000 Additional costs for further processing 28,000 20,000 12,000 60,000 Sales value if processed further 280,000 120,000 70,000 470,000 ....
Sell or Process Further Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B С Selling Price $25 per pound $19 per pound...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 13,800 pounds 21,500 pounds Product Selling Price A 24.00 per pound s 18.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price $ 16 per pound B $ 8 per pound C $ 25 per...
Dorsey Company manufactures three products from a common input in a
joint processing operation. Joint processing costs up to the
split-off point total $330,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling peices and total output at the split-off point are as
follows:
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $305,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price $ 11.00 per pound $ 5.00 per pound $ 17.00 per gallon Quarterly...
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $395,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows Quarterly Output 14,800 pounds ProductSelling Price A 29.00 per pound 14 8 $ 23.08 per pound...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $300,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling prices and total output at the split-off point are as
follows:
Product Selling Price $ 10.00 per pound $ 4.00 per pound $ 16.00 per gallon Quarterly...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, the company allocates these costs to the joint products
on the basis of their relative sales value at the split-off point.
Unit selling prices and total output at the split-off point are as
follows:
Product
Selling Price
Quarterly
Output
A
$
16
per pound
15,000
pounds
B
$
8
per...
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