Bowen Company makes two products from a joint production process. Each product m

Question

Bowen Company makes two products from a joint production process. Each product may be sold at the
split-off point or processed further. Information concerning these products for last year appears
below:
Product X Product Y
Allocated joint costs .................... $25,000 $18,000
Sales value after further processing ..... $47,000 $41,000
Sales value at the split-off point ....... $28,000 $23,000
Additional processing costs .............. $16,000 $19,000
Assume Bowen Company makes all the correct sell or process further decisions.
Calculate the net income reported by Bowen Company last year. Do not use decimals in your answer.

Explanation / Answer

Please rate this answer: They will process X further but not Y, because they will make more money by processing X further but less money by processing Y further. 70,000 sales (47,000 +23,000) -59,000 less costs (25,000+18,000+16,000) =11,000 net income Answer: $11,000 thanks

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