Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Question

Question

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,000 a year.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1


a)	Financial advantage (disadvantage) of processing Product X beyond the split-off

	= (sale value after further processing - sale value at the split-off point ) - Further processing cost

	=($37600-20000) -$24100

	=-6500	(disadvantage)


b)	Financial advantage (disadvantage) of processing Product Y beyond the split-off

	= (sale value after further processing - sale value at split-off point ) - Further processing cost

	=($58100-30000) -$18400

	=$9700	Advantage


c)	Minimum Amount of company should accept for product X at the split-off point


	sale value after further processing		$ 37,600
	less: cost of further processing		$ 24,100
	minimum selling price at split-off		$ 13,500


d)	Minimum Amount company should accept for product Y at the split-off point

	sale value after further processing		$ 58,100
	less: cost of further processing		$ 18,400
	minimum selling price at split-off		$ 39,700

	Feel Free To Discuss Queries. Please Rate

Add a comment

Answer 2

Similar Homework Help Questions

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,400 $ 28,600 $ 47,000 Sales value at split-off point...
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 28,500 $ 19,000 $ 47,500 Sales value at split-off point...
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $40,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product x...

TB Problem Qu. 12-203 Ibsen Company makes two products from a common ... Ibsen Company makes...

TB Problem Qu. 12-203 Ibsen Company makes two products from a common ... Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $40,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at...
Iaci Company makes two products from a common input. Joint processing costs up to the split-off...

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $53,700 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 20,400 $ 33,300 $ 53,700 Sales value at split-off point...
Victoria Contreras Company makes two products from a common input. Joint processing costs up to the...

Victoria Contreras Company makes two products from a common input. Joint processing costs up to the split- off point total $48,600 a year. The company allocates these c0sts to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data conceming these products appear below: Total Product Y 29,800 37,800 17,600 Product X 48,600 63,650 18,800 Allocated joint processing costs Sales vale at...

laci Company makes two products from a common input. Joint processing costs up to the split-off...

laci Company makes two products from a common input. Joint processing costs up to the split-off point total $51,200 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product YTotal Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after...
TB Problem Qu. 12-203 lbsen Company makes two products from a common... lbsen Company makes two...

TB Problem Qu. 12-203 lbsen Company makes two products from a common... lbsen Company makes two products from a common input. Joint processing costs up to the split-off point total $46,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below Total $ 46,000 $ 50,000 $42,900 $ 96,500...
Product X and Y are made from a common input. Joint processing costs up to the...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,000 $ 28,000 $ 46,000 Sales value at split-off...

Product X and Y are made from a common input. Joint processing costs up to the...

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,900 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,300 $ 28,600 $ 46,900 Sales value at split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Homework Answers