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Question 4 (Total: 26 marks) Cows Creamery Company makes two products from a common input. Joint processing costs up to the s

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Answer #1
Part-1
Computation of Net Monetary Advantage / Disadvantage - Gooey Mooey
Sales Value After Further Processing $40,800.00
Less: Cost of Further Processing $11,600.00
Net Reliazable value after further Processing $29,200.00
Less: Sales Value at Split off Point -$32,000.00
Net monetary Advantage / (Disadvantage ) -$2,800.00
Part-2
Computation of Net Monetary Advantage / Disadvantage - Wowie
Sales Value After Further Processing $54,200.00
Less: Cost of Further Processing $25,300.00
Net Reliazable value after further Processing $28,900.00
Less: Sales Value at Split off Point -$28,000.00
Net monetary Advantage / (Disadvantage ) $900.00
Part -3, Minimum price at Split off point fo Wowie to be accepted = 28000+900=28900
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