A company manufactures three products using the same production process. The costs incurred up to the split-off point are $206,100. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number of Units Produced Selling Price at Split-Off Selling Price after Processing Additional Processing Costs D 4,130 $10.20 $15.50 $15,800 E 5,910 11.40 16.20 20,720 F 2,030 19.50 22.80 9,560 (b1) Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) $ (b2) Product D $ Product E Product F Which product(s) should be processed further and which should be sold at the split-off point? Product D Product E Product F
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $206,100. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number of Units Produced Selling Price at Split-Off Selling Price after Processing Additional Processing Costs D 4,130 $10.20 $15.50 $15,800 E 5,910 11.40 16.20 20,720 F 2,030 19.50 22.80 9,560 (b1) Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) $ (b2) Product D $ Product E Product F Which product(s) should be processed further and which should be sold at the split-off point? Product D Product E Product F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote
Transcribed Image Text:A company manufactures three products using the same production process. The costs incurred up to the split-off point are $206,100.
These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the
selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are
as follows.
Product
Number of
Units Produced
Selling Price
at Split-Off
Selling Price
after Processing
Additional
Processing Costs
D
4,130
$10.20
$15.50
$15,800
E
5,910
11.40
16.20
20,720
F
2,030
19.50
22.80
9,560
(b1)
Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the
number e.g. -45 or parentheses e.g. (45).)
Incremental profit
(loss)
$
(b2)
Product D
$
Product E
Product F
Which product(s) should be processed further and which should be sold at the split-off point?
Product D
Product E
Product F
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