I'm stuck on how to work this out Question 1 of 4>0/12.5!!preceaing tne number e.g. -45 or parentneses e.g. (45).)SpockUhuraSuluIncremental profit (loss)$$4Indicate whether each of the three joint products should be sold as is, or processed further.SpockUhuraSuluSave for LaterLast saved 17 minutes ago.Attempts: 1 of 2 usedSubmit AnswerSaved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes.2 OneDriveUsing multiple attempts will impact your score.25% score reduction after attempt 1ScreenshoThe screer Question 1 of 40/12.5Pharoah Minerals processes materials extracted from mines. The most common raw material that it processes results in three jointproducts: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higherprice. The company incurs joint costs of $182,100 to process one batch of the raw material that produces the three joint products.The following cost and sales information is available for one batch of each product.Sales Value atAllocatedCost to ProcessSales Value ofSplit-Off PointJoint CostsFurtherProcessed ProductSpock$209,600$40,200$109,700$300,900Uhura299,80060,90084,700400,600Sulu455,80081.000250,200799,600Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative signpreceding the number e.g. -45 or parentheses e.g. (45).)SpockUhuraSuluIncremental profit (loss)$$$Indicate whether each of the three inint products should be sold as is or processed further

Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Answered: on how to wo

Business

Accounting

on how to wo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Problem 9 Comely Products manufactures three products R, S, and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S, and two kilos of T. During August, 50,000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further processing cost Selling Price Product R P30,000 P10.00 Product S P20,000 P12.00 Product T P30,000 P15.00 If all units of Product T are sold, and selling and administrative expenses are 20% of sale, the net income from the sale of Product T is:
Question 6. Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: product X, $50,000; product Y, $90,000; and product Z, $60,000. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product X Y . Z Required: Additional Processing Costs $35,000 $40,000 $12,000 Sales Value after Further Processing $80,000 $150,000 $75,000 Which product or products should be sold at the split-off point, and which product or products should be processed further? Show computations.
Problem 4 Bexter Labs produces three products: A, B, and C. Bexter can sell up to 3000 units of product A, up to 2000 units of product B, and up to 2000 units of product C. Each unit of product C uses two units of A and three units of B and incurs $5 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and process one unit of raw material 1. Each processed unit of raw material 1 yields two units of A and three units of B. It costs $3 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields one unit of A and two units of B. The unit prices for the products are A, $5; B, $4; C, $25. The quality levels of each product are: A, 8; B, 7; C, 6. The average quality level of the units sold must be at least 7. Determine how to maximize Bexter's profit.
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $178,600 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value atSplit-Off Point AllocatedJoint Costs Cost to ProcessFurther Sales Value ofProcessed Product Spock $209,500 $39,200 $110,100 $300,900 Uhura 299,900 59,100 85,100 400,900 Sulu 454,000 80,300 249,500 800,700 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock Uhura Sulu…
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $179,400 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value atSplit-Off Point AllocatedJoint Costs Cost to ProcessFurther Sales Value ofProcessed Product Spock $209,700 $40,000 $109,600 $300,900 Uhura 300,000 60,200 84,900 399,900 Sulu 455,500 79,200 249,500 800,500 Determine the incremental profit or loss that each of the three joint products. Spock Uhura Sulu Incremental profit (loss) $ $ $ Indicate whether each of the three joint products should be sold as…
5.Arthur Corp. manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs P4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is P10 per gallon for Product A and P14 for Product B. Product B requires an additional process beyond split-off at a cost of P2 per gallon before it can be sold. What is Arthur's cost to produce 1,000 gallons of Product B? 6.The portion of joint cost allocated to Product A is
66. Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs 4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is 10 per gallon for Product A and 14 for Product B. Product B requires an additional process beyond split-off at a cost of 2 per gallon before it can be sold. What is Idaho's cost to produce 1,000 gallons of Product B? a. 5,040 b. 4,360 c. 4,860 d. 5,360 e. 3,360
Question 4 Ayayai Industrial Products Inc. is a diversified industrial-cleaner processing company. The company’s Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 855,000 ounces of chemical input are processed at a cost of $207,000 into 570,000 ounces of floor cleaner and 285,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $240,000.FloorShine sells at $18 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 285,000 ounces of another compound (TCP) to the 285,000 ounces of table cleaner. This joint process will yield 285,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $100,000. Both…
Question 9.2 Arizona Ltd. has two divisions: 1) The Machining Division prepares the raw materials into component parts, and 2) Assembly Division assembles the components into finished product. No inventories exist in either division at the beginning of the year. During the year the Machining Division prepared 80,000 square meters of sheet metal at a cost of $480,000. All production was transferred to the Assembly Division where the metal was converted into 80,000 units of finished product at an additional cost of $5 per unit. The 80,000 units were sold for $2,000,000. Required: Determine the operating income for each division if the transfer price from Machining to Assembly is at cost. Determine the operating income for each division if the transfer price is $5/square meter. Since the Machining Division has all of its sales internally to the Assembly Division, does the manager care what price is selected? Why? Should the Machining Division be a cost center or a profit center under…
11. Special Order, Traditional Analysis Fiorello Company manufactures two types of cold-pressed olive oil, Refined Oil and Top Quality Oil, out of a joint process. The joint (common) costs incurred are $88,350 for a standard production run that generates 37,200 gallons of Refined Oil and 18,600 gallons of Top Quality Oil. Additional processing costs beyond the split-off point are $2.50 per gallon for Refined Oil and $1.85 per gallon for Top Quality Oil. Refined Oil sells for $4.25 per gallon, while Top Quality Oil sells for $8.20 per gallon. MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 37,200 gallons of Top Quality Oil at a price of $8 per gallon. MangiareBuono plans to have the oil bottled in 16-ounce bottles with its own MangiareBuono label. If Fiorello accepts the order, it will save $0.23 per gallon in packaging of Top Quality Oil. There is sufficient excess capacity for the order. However, the market for Refined Oil is saturated, and any additional…
Joint Products; By-Products (Appendix) The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, andthe by-product is Bit. Marshall accounts for the costs of its products using the net realizable valuemethod. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,000 disposal cost for the by-product. A summary of a recent month’s activityat Marshall is shown below:Ying Yang BitUnits sold 50,000 40,000 10,000Units produced 50,000 40,000 10,000Separable processing costs—variable $140,000 $42,000 $—Separable processing costs—fixed $10,000 $8,000 $—Sales price $6.00 $12.50 $1.60Total joint costs for Marshall in the recent month are $265,000, of which $115,000 is a variable cost.Required1. Calculate the manufacturing cost per unit for each of the three products.2. Calculate the total gross margin for each product
Question 1.1 Bichette Soda Company operates many bottling plants around the globe. At its Mississauga plant, where nine different brands are bottled, the following costs were incurred in the current year to produce 15,000,000 cans of soft drink: Development costs of adding the new product "Pop Plus" amounted to $614,000. Material handling costs of inspecting and handling concentrate, bottles, packages, and so forth amounted to $433,500. These costs are allocated to each production run. Incoming materials purchase costs that can be directly traced to individual products being canned and packaged. These costs are purely variable with output level and amounted to $2,213,000. Executive salaries and other central administration overhead amounted to $423,000. Plant overhead including costs related to: supervision, safety, energy and plant insurance amounted to $623,000. The cost of cleaning and calibrating equipment for each production run amounted to $171,500. Required…