34) Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $60 to buy from farmers and $19 to crush in the company's plant. Twointermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $30 or processed further for $29 to make the end product industrial fiber that is sold for $77. The beetjuice can be sold as is for $51 or processed further for $33 to make the end product refined sugar that is sold for $77.What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Answered: 34) Boney Corporation processes sugar…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Your Corporation processes sugar beets in batches. A batch of sugar beets costs $625 to buy from farmers and $275 to crush in the company's plant. Two intermediate products, beet fiber (750 units) and beet juice (250 units), emerge from the crushing process. The beet fiber can be sold as is for $20 or processed further for $18 to make the end product industrial fiber that is sold for $45. The beet juice can be sold as is for $42 or processed further for $24 to make the end product refined sugar that is sold for $62. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? Group of answer choices $3,975 $6,000 $4,250 ($4,250) $5,250
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?
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11.
Tulsa Milling buys oats at $0.60 per pound and produces TPM Oat Flour, TPM Oat Flakes, and TPM Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per pound. The oat flour can be sold for $1.50 per pound, the oat bran for $2.00 per pound. Each pound of oats has 0.2 pounds of oat bran and 0.8 pounds of oat flour. A pound of oat flour can be made into oat flakes for a fixed cost of $240,000 plus a variable cost of $0.60 per pound. Tulsa Milling plans to process 1 million pounds of oats in 20X0, at a purchase price of $600,000. Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method.…
Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet). Standard costs and quantities to produce one bag of sandblasting media are as follows: Quantity Cost Quartz-sand 20 kg $4.00 Cullet 5 kg $3.00 80,000 bags of sandblasting media were produced. Actual purchases and inventories were: Beginning Ending Purchases Purchases Inventory Inventory (in kg) ( in $) Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161 Cullet 0 kg 120,000 kg 550,000 kg $286,000 Required: Calculate the following variances: a)Total direct material efficiency variance. b)Total direct material mix variance.…
Dineshbhai
Lance Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs P60 to buy from farmers and P13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for P29 or processed further for P13 to make the end product industrial fiber that is sold for P61. The cane juice can be sold as is for P40 or processed further for P20 to make the end product molasses that is sold for P67.1. How much profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?

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