Business, 23.04.2021 23:20 paulawells11
Iaukea 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 $17,900 $27,200 $45,100
Sales value at split-off point $25,400 $37,000 $62,400
Costs of further processing $22,400 $16,700 $39,100
Sales value after further processing $47,000 $54,700 $101,700
Required:
a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?
b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?
Answers: 3
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Iaukea Company makes two products from a common input. Joint processing costs up to the split-off po...
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