48,000. A total of 5,000 units of product TB are produced from the joint process. Product TB can be sold at the split-off point for P24 per unit, or it can be processed further for an additional total cost of P15,000 and then sold for P26 per unit. If product TB is processed and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?

48,000. A total of 5,000 units of product TB are produced from the joint process. Product TB can be sold at the split-off point for P24 per unit, or it can be processed further for an additional total cost of P15,000 and then sold for P26 per unit. If product TB is processed and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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U CO. has two products, product X and product B, emerge from a joint process. Product X has been allocated P30,800 of the total joint costs of P44,000. A total of 2,000 units of product X are produced from the joint process. Product X can be sold at the split-off point for P13 per unit, or it can be processed further for an additional total cost of P14,000 and then sold for P15 per unit. If product X I not processed further and sold, what would be the effect (increase/decrease) on the overall profit of the company compared with sale at split-off point?
A company manufactures products X and Y using a joint process. The joint processing costs are P10,000. Products X and Y can be sold at split-off for P12,000 and P8,000 respectively. After split-off, product X is processed further at a cost of P5,000 and sold for P21,000 whereas product Y is sold without further processing. If the company uses the net realizable value method for allocating joint costs, the joint cost allocated to X is
Two products, Ql and VH, emerge from a joint process. Product QI has been allocated $27,300 of the total joint costs of $48,000. A total of 2.200 units of product Ql are produced from the joint process. Product Ql can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,200 and then sold for $13 per unit. If product Ql is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? Multiple Cholce ($33,900) ${5.800) $18.400 ($21,500)
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ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
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