Question 24Senior Company has two products, Alpha and Beta, which emerge from a joint process with a total joint cost of $12,000 Data for the product phProduced from the process900 unitsAllocated share of joint cost$8,500Cost of processing further$12,600Price per unit.......at split-off pointafter further processing***$23What is the price per unit after further processing that would make the company indiferent between processing further and being a pil of jo(Do not round intermediate calculations. Round the final number to the nearest two decimal places

Joint costs are those costs which are incurred simultaneously for more than one product. These costs…

Question 24 Senior Company has two products, Alpha and Beta, which emerge from a joint process with a total joint cost of $12,000 Data for the produ Produced from the process 900 units Allocated share of joint cost Cost of processing further Price per unit... *** $8,500 $12,600 $23 at split-off point ... after further processing What is the price per unit after further processing that would make the company indifferent between processing further and being at spil of poin (Do not round intermediate calculations. Round the final number to the nearest two decimal places

Question 24 Senior Company has two products, Alpha and Beta, which emerge from a joint process with a total joint cost of $12,000 Data for the produ Produced from the process 900 units Allocated share of joint cost Cost of processing further Price per unit... *** $8,500 $12,600 $23 at split-off point ... after further processing What is the price per unit after further processing that would make the company indifferent between processing further and being at spil of poin (Do not round intermediate calculations. Round the final number to the nearest two decimal places

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 64P: Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma,...

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See Cornerstone Exercise 20.4. Fisher Company has three sequential processes: cutting, welding, and assembly. Assume that the optimal mix is Component A = 0 units per week; and Component B = 30 units per week. Demand is uniformly spread out over the five-day work week. Fisher requires a 2.5-day buffer. Required: 1. Identify the drummer, the rate of production, the time buffer, and the rope. 2. Illustrate the DBR structure of Fisher Company. 3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories?
Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma, and Delta) from a common input. The joint costs for a typical quarter follow: The revenues from each product are as follows: Alpha, 100,000; Beta, 93,000; Gamma, 30,000; and Delta, 40,000. Management is considering processing Delta beyond the split-off point, which would increase the sales value of Delta to 75,000. However, to process Delta further means that the company must rent some special equipment that costs 15,400 per quarter. Additional materials and labor also needed will cost 8,500 per quarter. Required: 1. What is the operating profit earned by the four products for one quarter? 2. CONCEPTUAL CONNECTION Should the division process Delta further or sell it at split-off? What is the effect of the decision on quarterly operating profit?
Joint Products Tango Company produces joint products M, N, and T from a joint process. Thisinformation concerns a batch produced in April at a joint cost of $120,000:ProductUnits Producedand SoldAfter Split-OffTotal Separable Costs Total Final Sales ValueM 10,000 $10,000 $160,000N 4,000 10,000 140,000T 5,000 5,000 25,000Required How much of the joint cost should be allocated to each joint product using the net realizablevalue method?
Problem: Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma, and Delta) from a common input. The joint costs for a typical quarter follow: Direct Materials $500,000 Direct Labor 36,000 Overhead 72,000 The revenues from each product are as follows: Alpha, $100,000; Beta, $93,000; Gamma, $30,000; and Delta, $40,000. Management is considering processing Delta beyond the split-off point, which would increase the sales value of Delta to $75,000. However, to process Delta further means that the company must rent some special equipment that costs $15,400 per quarter. Additional materials and labor also needed will cost $8,500 per quarter. Required: What is the effect of the process-further decision on the quarterly operating profit?
Stars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Units Sales Value Additional Sales Product Produced at Split-Off Costs Value A1 3,000 $10,000 $2,500 $15,000 B2 5,000 30,000 3,000 35,000 C3 4,000 20,000 4,000 25,000 D4 6,000 40,000 6,000 45,000 If Product B2 is processed further, profits will increase by $30,000. decrease by $3,000. increase by $32,000. increase by $2,000.
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.
The Trece Co. manufactures joint products X and Y as well as by-product Z. Cumulative costs data for the period show P204,000 representing 20,000 units completed processed through the Refining Department at an average cost of P10.20. Costs are assigned to X and Y by the market value method which considers further processing costs in subsequent operations.Additional data: Z X YQuantity processed 2,000 units 8,000 units 10,000 unitsSales price per unit P5 P20 P25Further processing cost per unit 1 5 7Marketing and administrativeexpense per unit 1Operating profit per unit 1 Required:a. Assuming by-product value is material determine the joint cost allocated to Z using Net realizable value method and joint cost to X and Y.b. Assuming by-product value is immaterial and insignificant,…
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 17,000 $ 18,800 $ 230,000 N 11,000 16,400 210,000 T 12,000 3,800 39,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method?
Happy Corp. manufactures Products A, B, C, and D from a joint process. Additional information is as follows: Market If Processed Further Units Value at Additional Market Product Produced Split-Off Costs Value A 6,000 Php 80,000 Php 7,500 Php 90,000 B 5,000 60,000 6,000 70,000 C 4,000 40,000 4,000 50,000 D 3,000 20,000 2,500 30,000 18,000 Php 200,000…
The Trece Co. manufactures joint products X and Y as well as by-product Z. Cumulative costs data for the period show P204,000 representing 20,000 units completed processed through the Refining Department at an average cost of P10.20. Costs are assigned to X and Y by the market value method which considers further processing costs in subsequent operations. Additional data: Z X Y Quantity processed 2,000 units 8,000 units 10,000 units Sales price per unit P5 P20 P25 Further processing cost per unit 1 5 7 Marketing and administrative expense per unit 1 Operating profit per unit 1 Required: a. Assuming by-product value is material determine the joint cost allocated to Z using Net realizable value method and joint cost to X and Y. b. Assuming by-product value is immaterial and insignificant, what is the joint cost allocated to X and Y.
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:
Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Delta Kappa Omega Total Units produced .............................................4,000 2,000 1,000 7,000 Joint cost allocation ...................................$36,000 ? ? $60,000 Sales value at split-off .....................................? ? $15,000 $100,000 Additional costs if processed further ....$ 7,000 $ 5,000 $ 3,000 $ 15,000 Sales value if processed furt.......................$70,000 $25,000 $20,000 $115,000 Required: 1. Assuming that joint costs are allocated using the relative-sales-value method, what were the joint costs allocated to products Kappa and Omega? 2. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at…