Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two Intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktall of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $40 to buy from farmers and $10 to peel In the company's plant. The peels produced from a batch can be sold as Is for anlmal feed for $22 or processed further for $15 to make the cocktall of nutrients that are sold for $42. The depeeled spuds can be sold as Is for $33 or processed further for $22 to make frozen french fries that are sold for $54. Requlred: a. Assuming that no other costs are Involved In processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes Into the cocktall of organic nutrients and frozen french fries? b. Should each of the Intermedlate products, peels and depeeled spuds, be sold as Is or processed further Into an end product?

Managerial Accounting
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Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
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Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two Intermedlate products-peels
and depeeled spuds. The peels can then be processed further to make a cocktall of organic nutrlents. And the depeeled spuds can be
processed further to make frozen french frles. A batch of potatoes costs $40 to buy from farmers and $10 to peel In the company's
plant. The peels produced from a batch can be sold as Is for animal feed for $22 or processed further for $15 to make the cocktall of
nutrlents that are sold for $42. The depeeled spuds can be sold as Is for $33 or processed further for $22 to make frozen french fries
that are sold for $54.
Requlred:
a. Assuming that no other costs are Involved In processing potatoes or In selling products, how much money does the company make
from processing one batch of potatoes Into the cocktall of organic nutrlents and frozen french frles?
b. Should each of the Intermedlate products, peels and depeeled spuds, be sold as Is or processed further Into an end product?
Complete this question by entering your answers in the tabs below.
Required A
Requřed
Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product?
(Negative amounts sheuld be indicated by a minus sign.)
Cocktail of Organic
Nutrients
Frozen French Fries
Financial advantage (disadvantage) from further processing
Sold as is or processed further?
<. Required A
< Prev
5 o 7
Next >
Me
MGT 248 Fall 202.docK
MCT 240 Fall 202cc04
eekly Assigne ocx
ACCEabus 21 do
Transcribed Image Text:Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two Intermedlate products-peels and depeeled spuds. The peels can then be processed further to make a cocktall of organic nutrlents. And the depeeled spuds can be processed further to make frozen french frles. A batch of potatoes costs $40 to buy from farmers and $10 to peel In the company's plant. The peels produced from a batch can be sold as Is for animal feed for $22 or processed further for $15 to make the cocktall of nutrlents that are sold for $42. The depeeled spuds can be sold as Is for $33 or processed further for $22 to make frozen french fries that are sold for $54. Requlred: a. Assuming that no other costs are Involved In processing potatoes or In selling products, how much money does the company make from processing one batch of potatoes Into the cocktall of organic nutrlents and frozen french frles? b. Should each of the Intermedlate products, peels and depeeled spuds, be sold as Is or processed further Into an end product? Complete this question by entering your answers in the tabs below. Required A Requřed Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product? (Negative amounts sheuld be indicated by a minus sign.) Cocktail of Organic Nutrients Frozen French Fries Financial advantage (disadvantage) from further processing Sold as is or processed further? <. Required A < Prev 5 o 7 Next > Me MGT 248 Fall 202.docK MCT 240 Fall 202cc04 eekly Assigne ocx ACCEabus 21 do
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