value 8.00 points laci Company makes two products from a common input. Joint pro
ID: 2600056 • Letter: V
Question
value 8.00 points laci Company makes two products from a common input. Joint processing costs up to the split-off point total $50,500 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 Allocated joint processing costs Sales value at split-off point Costs of further processing Product X Product Y Total $ 19,800 $30,700 50,500 $24,300 $ 38,300 62,600 $ 24,300 $18,600 42,900 Sales value after further processing48,000 $58,500 S 106,500 Required: a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value.) b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the spläit-off point? (Input the amount as a positive value.) c. what is the minimum amount the company should accept for Product X i to be sold at the split-or point? 0 Type here to searchExplanation / Answer
Ans.a Particulars X Sales value after further processing 48000 Less: Cost of further processing -24300 Benefit of further processing 23700 Less: sales value at spilt off point -24300 Net advantage (disadvantage) -600 Ans.b Particulars Y Sales value after further processing 58500 Less: Cost of further processing -18600 Benefit of further processing 39900 Less: sales value at spilt off point -38300 Net advantage (disadvantage) 1600 Ans.c Particulars X Sales value at spilt off point 24300 Add: Net advantage (disadvantage) -600 Minimum Selling Price at Spilt-off 23700 Ans.d Particulars Y Sales value at spilt off point 38300 Add: Net advantage (disadvantage) 1600 Minimum Selling Price at Spilt-off 39900
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