Question

CURS Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the for a higher price. The cost and selling price data for a recent period are as follows: off point or can be processed further and then sold Sales Value Product 12 Product 14 Product 16 Point $50,100 11.000 60,800 Cost to Process Further $100,300 29,200 150,900 Sales Value after Further Processing $190,100 34,700 220,300 Detene the total net income all products are sold at the so-off point Total net income Determine the total net income if all products are soldater further processing Total net income Un incremental analysis, determine which products should be sold at the set of point and which should be processed further. If an amount reduces the net income then enter a ve sign preceding the number, -15.000 of parenthesis (1000)) w Incremental Profit/(Loss) Decision Product 12 Product 14 Product 16 Determine the total net income using the results from the previous part of the question

Answer 1

total net income if all the products are sold at the split off point is:21600 as follows

products	sale value at spli toff point(1)	common process cost allocated(2)	net income at split off point(3=1-2)
product 12	50100	100300*50100/121900=41223	8877
product 14	11000	100300*11000/121900=9051	1949
product 16	60800	100300*60800/121900=50026	10774
total	121900	100300	21600

total net income if the all products are sold after further processing 64400 as follows

products	sale vale after further processing(1)	cost of further processing(2)	common process cost allocated(3)	net income after further processing (4=1-2-3)
product 12	190100	100300	41223	48577
product 14	34700	29200	9051	-3551
product 16	220300	150900	50026	19374
total	445100	280400	100300	64400

products	incremental profit/(loss)	description
product 12	48577	should further process
product 14	-3551	sell at split off
product 16	19374	should further process

note:if the net income at split off point is higher than net income at after further processing,then product should sell at split off poit,else further process,