Answered: QUIK Manufacturing Company Ltd produces…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 4CMA: Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in...

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Question

QUIK Manufacturing Company Ltd produces two products from a joint process. Information
about the two joint products is as follows:
Information Product A Product B
Budgeted production (in kg) 2 000 4 000
Selling price per kg at split-off $ 10 $ 20
Additional processing costs per kg
after split-off (all variable)
$ 15 $ 30
Selling price per kg after further
processing
$40 $50
The cost of the joint process is $ 90 000.
Required:
a) Which of QUIK company’s joint products should be sold at split-off point? Please support
your answer with the necessary calculations.
b) Which of QUIK company’s joint products should be processed further?

please answer the same with working allocations

Information
Product A
Product B
Budgeted production (in kg)
Selling price per kg at split-off
Additional processing costs per kg
after split-off (all variable)
2 000
$ 10
$ 15
4 000
$ 20
$ 30
Selling price per kg after further
processing
$40
$50
The cost of the joint process is $ 90 000.

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Decision to Sell before or after additional processing

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