Advantage of processing = Sales revenue after processing – Sales revenue before processing – Processing costs
Joint costs are sunk costs and are not relevant
Hence, advantage = 26-12-10
= $4 per liter
Question 3 Not complete Marked out of 1.00 P Flag question Sell or Process Further Port...
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $5 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $5 per liter or processed further into Product G at an additional cost of $2 per liter. Product G can then be sold for $10 per liter. Determine whether...
Sell or Process Further Port Allen Chemical Company processes a raw material D into join products E and F. Raw material D costs $12 per liter. It costs $100 liters of D into 60liters of E and 40 liters of F. Product F can be sold immediately for $12 per liter or processed further into Product G at an additional cost $10 per liter. Product G can then be sold for $26 per liter. Required Determine whether Product F should...
Port Allen Chemical Company processes a raw material D into join products E and F. Raw material D costs $12 per liter. It costs $100 liters of D into 60liters of E and 40 liters of F. Product F can be sold immediately for $12 per liter or processed further into Product G at an additional cost $10 per liter. Product G can then be sold for $26 per liter. Required Determine whether Product F should be sold or processed...
Question 2 Not complete Marked out of 1.00 P Flag question Outsourcing (Make-or-Buy) Decision Assume a division of Hewlett-Packard currently makes 10,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $36 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $12. Further assume Sanmina Corporation offers to sell Hewlett-Packard the 10,000 circuit boards for $36 each. If Hewlett-Packard accepts this offer, the facilities currently used to make...
Exercise 12-7 Sell or Process Further Decisions (LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $335.000 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 $ 17.00...
Exercise 12-7 Sell or Process Further Decisions (LO12-7] 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: Product A Selling Price $ 18.00 per pound...
Exercise 12-7 Sell or Process Further Decisions [LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $390,000 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 $28.00 per pound $ 22.00...
Exercise 12-7 Sell or Process Further Decisions (LO12-7) 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 A B C Selling Price $ 20.00...
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...
Question 1 Not complete Marked out of 1.00 P Flag question Elements of a Flexible Budgets Presented are partial flexible cost budgets for various levels of output. Required Solve for items "a" though "n" Rate per unit Units 1,000 1.500 Direct materials a. $ $10,000 b. S O c. $ Direct labor d. $ 3,000 f. Variable overhead $3.00 g. 0 h. Fixed overhead 0 k. Total o n. $ 2,000 $40.000 Check