Dodrill Company makes two products from a common input. Joint processing costs u

Question

Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 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: What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? A) $(4,200) B) $21,800 C) $24,400 D) $(1,600)

Explanation / Answer

Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 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: What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

A) $(4,200) is correct answer

PLEASE REFER FOR MORE:

eportfolio.lib.ksu.edu.tw/.../fetch/0-13-236555-3_ch16.pdf

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