In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: If your formulas are correct, you should get the correct answers to the following questions.
Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point: 8 9 10Undyed superfine wool 11Costs of further processing (dyeing) intermediate products: 12Undyed coarse wool 13Undyed fine wool 14Undyed superfine wool 15 Sales value of end products: 16Dyed coarse wool 17Dyed fine wool 18Dyed superfine wool $159,000 40,000 $136,000 $122,000 53,000 Undyed coarse wool Undyed fine wool 50,000 $60,000 10,000 $157,000 $ 197,000 92,000
a. What is the overall profit if all intermediate products are processed into final products?
b. What is the financial advantage (disadvantage) from further processing?
Answers: 1
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In industries that process joint products, the costs of the raw materials inputs and the sales value...
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