Duiker Corporation has a joint process that produces three product: A, S and B.
ID: 2416663 • Letter: D
Question
Duiker Corporation has a joint process that produces three product: A, S and B. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for the year amount to $30,000. Other data follows:
PRODUCT
SALES VALUE AT SPLIT-OFF
SEPARABLE PROCESSING COSTS AFTER SPLIT-OFF
SALES VALUE AT COMPLETION
A
$28,000
$4,500
$35,000
S
10,000
7,000
20,000
B
8,300
7,200
11,000
You must enter your answer in the following format: $xxx,xxx for an increase in net profits
or ($xxx,xxx) for a decrease in net profits
How much is net profit or loss??????????????????????
PRODUCT
SALES VALUE AT SPLIT-OFF
SEPARABLE PROCESSING COSTS AFTER SPLIT-OFF
SALES VALUE AT COMPLETION
A
$28,000
$4,500
$35,000
S
10,000
7,000
20,000
B
8,300
7,200
11,000
Explanation / Answer
Calculation of profit or loss if sold at split-off Particulrs In $ Sales 47100 Less : Joint processing cost 30000 Profit 17100 Calculation of profit or loss if sold at Completion Product A B C Sales 35000 20000 11000 Less : Processing cost 4500 7000 7200 Product wise profit 30500 13000 3800 Total Profit 47300 Less : Joint processing cost 30000 Profit 17300 Increase in profi to the extent of $200 if Duiker Corporation process further and sale.
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