Part 1 | Computation of net income at split-off point | ||||
Prodcut A | Prodcut B | Prodcut C | Total | ||
Sales value at split-off point | $1,50,800 | $1,27,400 | $53,200 | $3,31,400 | |
Less:Joint cost | $1,12,086 | $1,75,859 | $27,055 | $3,15,000 | |
Net Income | $38,714 | -$48,459 | $26,145 | $16,400 | |
Computation of net income after further processing | |||||
Prodcut A | Prodcut B | Prodcut C | Total | ||
Sales value after further processing | $2,01,840 | $2,25,680 | $73,920 | $5,01,440 | |
Less:Joint cost | $1,12,086 | $1,75,859 | $27,055 | $3,15,000 | |
Less:Additional cost | $54,640 | $77,580 | $29,360 | $1,61,580 | |
Net Income | $35,114 | -$27,759 | $17,505 | $24,860 | |
Computation of Incremental profit | |||||
Prodcut A | Prodcut B | Prodcut C | |||
Incremental Revenue | $51,040 | $98,280 | $20,720 | ||
Less:Incremental costs | $54,640 | $77,580 | $29,360 | ||
Incremental Profit/(Loss) | -$3,600 | $20,700 | -$8,640 | ||
Part 2 | Incremental Profit/(Loss) | Decision | |||
Prodcut A | $30,200 | Sales at split-off point | |||
Prodcut B | -$11,100 | Sale after Further processing | |||
Prodcut C | $11,200 | Sales at split-off point | |||
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 13.00 per pound 11,600 pounds B $ 7.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 13.00 per pound 11,600 pounds B $ 7.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315.000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output 11,600 pounds $13.6 per A B pound $ 7.00 per pound...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 16 per pound 15,000 pounds B $ 8 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 14,000 pounds 21,800 pounds 5,200 gallons Product Selling Price 25.00 per pound $19.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $355,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 21.00 per pound $ 15.00 per pound $ 27.00...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price 22.00 per pound $ 16.00 per pound $ 28.00 per gallon Quarterly Output...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 13,800 pounds 21,500 pounds Product Selling Price A 24.00 per pound s 18.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 14.00 per pound 11,800 pounds B $ 8.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price $ 16 per pound B $ 8 per pound C $ 25 per...