LINK TO TEXT LINK TO TEXT LINK TO TEXT Stahl Inc. produces three separate produc
ID: 2533645 • Letter: L
Question
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Stahl Inc. produces three separate products from a common process costing $100,700. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.Sales Value
at Split-Off
Point Cost to
Process
Further Sales Value
after Further
Processing Product 10 $59,100 $100,200 $189,900 Product 12 16,000 30,500 35,000 Product 14 54,000 149,800 215,300
Explanation / Answer
Req 1: Net Income if sold at Split off: Sales revenue : Product 10 59100 Product 12 16000 Product 14 54000 Total Sales 129100 Less: Joint cost 100700 Net income at split off 28400 Req 2: Net income of sold after further processing: Sale revenue: Product 10 189900 Product 12 35000 Product 14 215300 Total sales 440200 Less: Joint cost 100700 Les: Further processing cost 280500 Product 10 100200 Product 12 30500 Product 14 149800 Net income after further processing 59000 Req 3: Ssales at Splitt Sales after further Incremental sales Further cost Incremental profits Product 10 59100 189,900 130,800 100200 30,600 Product 12 16000 35,000 19,000 30500 -11,500 Product 14 54000 215300 161,300 149800 11,500 Product 10: $ 30600 increase. Sold after further processing. Product 12: ($ 11500) loss, Sold at splitt offpoint Product 14: $ 11500 increase, Sold after further processing. Req 4: Total Net income as per above decision: Sales revenue Product 10 189900 Product 12 16000 Product 14 215300 Total sales 421200 Less: Cost Joint cost 100700 Further cost Product 10 100200 Product 14 149800 Net income 70500 Req 5: Yes, the net income has increased by $ 11500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.