A company manufactures three products using the same production process. The costs incurred up to the split-off point are $191,900. 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 (b1) D E F Number of Units Produced Product D 4,570 Incremental profit (loss) $ Product E 5,690 1,790 Product F Selling Price at Split-Off $10.10 11.80 19.10 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).) Product D Selling Price after Processing $14.70 16.30 process further sold at the split-off point 22.80 Additional Processing Costs (b2) Which product(s) should be processed further and which should be sold at the split-off point? $14,980 17,850 10,120 Product E Product F $ LA

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $191,900.
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
(b1)
D
E
F
Number of
Units Produced
Product D
4,570
Incremental profit (loss) $
Product E
5,690
1,790
Product F
Selling Price
at Split-Off
$10.10
11.80
19.10
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).)
Product D
Selling Price
after Processing
$14.70
16.30
process further
sold at the split-off point
22.80
Additional
Processing Costs
(b2)
Which product(s) should be processed further and which should be sold at the split-off point?
$14,980
17,850
10,120
Product E
Product F
$
LA
Transcribed Image Text:A company manufactures three products using the same production process. The costs incurred up to the split-off point are $191,900. 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 (b1) D E F Number of Units Produced Product D 4,570 Incremental profit (loss) $ Product E 5,690 1,790 Product F Selling Price at Split-Off $10.10 11.80 19.10 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).) Product D Selling Price after Processing $14.70 16.30 process further sold at the split-off point 22.80 Additional Processing Costs (b2) Which product(s) should be processed further and which should be sold at the split-off point? $14,980 17,850 10,120 Product E Product F $ LA
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