Joint products should be processed after the split-off point only if the difference in expected selling price at the split-off point and after further processing exceeds the per unit cost of processing after the split-off point. select from
-True
-False
True | ||
Joint products should be processed further only when the revenue from further processing is higher than the revenue if sold at split-off point. | ||
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Joint products should be processed after the split-off point only if the difference in expected selling...
Joint products should be processed after the split-off point only if the difference in expected selling price at the split-off point and after further processing exceeds the per unit cost of processing after the split-off point.
XYZ Company makes two products, W and P, in a joint process. At the split-off point, 60,000 units of Product W and 50,000 units of Product P are available each month. Monthly joint production costs total $120,000 and are allocated to the two products equally. Product W can either be sold at the split-off point for $5.60 per unit or it can be processed further and then sold for $8.80 per unit. If Product W is processed further, addi tional...
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 $330,000 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 peices and total output at the split-off point are as
follows:
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
SELL AT SPLIT – OFF POINT OR PROCESS FURTHER & JOINT COST ALLOCATION Lauricella Inc. produces three products from a common set of inputs for $95,000. Other sales and cost data follow: Unit Sales Price ____ Costs After At After further Split-off Product Quantity Split-off Processing Point__ Regular 8,000 $ 8 $ 10 $ 10,000 Special 5,000 5 8 15,000 Premium 4,000 6 10 20,000 REQUIRED: Which products should...
Gusler company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per quarter. 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 $ 3 per pound 10,000 pounds B $ 6 per pound 22,000 pounds C...
Sell or Process Further 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: Product A B С Selling Price $25 per pound $19 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 $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 $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 Quarterly Output A $ 22.00 per pound 13,400 pounds B $ 16.00 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 $340,000 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:
Each product can be processed further after the split-off point.
Additional processing requires no special facilities....