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? Support your answer with the necessary calculations.

Q: a product cell for wallace company has budgeted conversion costs of $420,000 for the year. the cell…

A: Per unit conversion cost=Budgeted conversion costsMinutes taken=$420,0002,100×6015=$50

Q: A value stream has three activities and two products. The units produced and shipped per week are 50…

A: Activity based costing system: It is precise method of allocation of overhead to the products. Under…

Q: Division A makes a part with the following characteristics: Production capacity in units- 15,000…

A: Contribution to Division A= Selling Price-Variable Cost Contribution to Division A=25-18= $7 per…

Q: Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: QUIK Manufacturing Company Ltd produces two products from a joint process. Information about the two…

A: QUIK Manufacturing Company Ltd. Produces two products i.e., Product A and Product B Budgeted…

Q: Sage Corporation manufactures two products with the following characteristics. Unit Contribution…

A: Where any resources are available in scarcity for production of a particular product, it should be…

Q: National Co. transfers a product from division AB to division CD. Variable cost of this product is…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: The Fabrication Division’s full (absorption) cost of a component is $340, which includes $40 of…

A: Particulars Amount Sales revenue $ 465 Less: Transfer price per component $ 374 Less: Variable…

Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…

A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…

Q: Sandhill Co. is considering the introduction of three new products. Per unit sales and cost…

A: Total direct labor hours available = 1600 hours Contribution per unit = Selling price per unit -…

Q: Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The…

A: Contribution margin: It is calculated by subtracting the variable cost from the selling price of the…

Q: The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division.…

A: Net income is the income earned by the company. It is presented in the income statement of the…

Q: ASAP In the production of a certain product, two operation are available. One willproduce 40 units…

A: The Break-even point refers to the level at which the cost of production is equal to the total…

Q: Ritner Corporation manufactures a product that has the following costs: Per Unit Per Year Direct…

A: In absorption costing , fixed manufacturing overhead will be included on predetermined basis. In…

Q: . XYZ ltd produces 5 different products from a single Raw Material. Raw Material is available in…

A: Since labour hours are not in abundance . It become our critical factor. We need to calculate the…

Q: Life Company produces 15,000 pounds of Product Emerald and 30,000 pounds of Product Ruby each week…

A: To determine whether to further process a product or not, it is important to calculate the…

Q: Division A makes a part with the following characteristics:     Production capacity in…

A: In the case of inter-departmental transfers, we should assess the impact at the company level.

Q: produces and sells lumber that can be sold to outside customers or within the company to the…

A: Internal transfer means where one independent department is transferring the goods to another…

Q: a) Which of QUIK company’s joint products should be sold at split-off point? Please support your…

A: QUIK Manufacturing Company Ltd. Produces two products i.e., Product A and Product B Budgeted…

Q: Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: itner Corporation manufactures a product that has the following costs:     Per Unit Per Year…

A: Absorption costing: It is a technique that assumes both fixed cost and variable cost as product…

Q: The firm manufactures a product with the following costs: Direct materials→₱14.00; Direct…

A: Absorption Costing: Absorption costing is a form of costing that takes into account all of the…

Q: Benitez Company currently outsources a relay switch that is a component in one of its products. The…

A: A make-or-buy decision refers to an act of using cost-benefit to make a strategic choice between…

Q: Malakas Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by…

A: The decision of further processing of joint products is based in incremental analysis. If the…

Q: Ritner Corporation manufactures a product that has the following costs: Per Unit Per Year Direct…

A: In absorption costing , fixed manufacturing overhead will be included on predetermined basis. In…

Q: A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and…

A: Using physical measure method,  Joint processing cost = 9,000  Total units produced = 1,800 + 2,600…

Q: Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost= $90,000). Six thousand…

A: Joint cost: A joint cost refers to the cost that benefits not only one product but many products.…

Q: Dallas Company manufactures two joint products: X and Y. Total joint production costs amounted to…

A:

Q: Alphabeta Corporation sells three products: J, K, and L. The following information was taken from a…

A: Sales mix: It is the proportion of each product contribution in the total sales during the year. It…

Q: The firm manufactures a product with the following costs: Direct materials→₱18.00; Direct…

A: Solution : Under absorption costing the fixed cost are also absorbed to the cost of the product…

Q: pur Division makes a part that can either be sold to outside customers or transferred internally to…

A:

Q: the amount of the relevant costs that would be saved by using the released facilities in the…

A: Given in the question: Production (in Units) 20000 Cost per unit is as below:   Direct…

Q: Cycle Time and Conversion Cost per Unit Hatch Manufacturing produces multiple machine parts. The…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…

A: The operating income is calculated as excess of sales revenue over total cost spent.

Q: Division A makes a part with the following characteristics: Production capacity in units- 15,000…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: selling price based on the absorption costing approach

A:

Q: roducts A, B, and C are produced from a single raw material input. The raw material costs $90,000,…

A: Step 1 Net Operating income means all revenue from operations and activities, minus all reasonably…

Q: A joint production process at the Company results in two products, cherry jelly and cherry jam. The…

A: The company is producing 2 products namely product CJE, and product CJA. Both the products are…

Q: Division A makes a part with the following characteristics:     Production capacity in…

A: Transfer pricing methodologies are those methods which are used for transferring of product from one…

Q: Tulip Company is made up of two divisions: A and B. Division A produces a widget that Division B…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: XYZ Group, Inc. has two companies – X Ltd, which is operating at just above 50% capacity, and Y Ltd,…

A: Transfer Price can be defined as the price at which one department transfers the product to another…

Q: Malakas Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by…

A: Product A Product B Selling price per pound with further processing P30.00 P22.00…

Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…

A: Costs that are not attributable to a single product are called joint cost.

Q: Products A and B are produced from a single raw material input. The raw material costs $90,000, from…

A: The impact on net income due to further processing the product is calculated by comparing the…

Q: Ron Chemicals produces four products from a joint process costing $150,000 per month. After leaving…

A: solution given product volume further processing cost selling price per unit A-1…