Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are showr in the following table. Most of Johnston's customers ask for a special blend of the three products which improves heat-resistance. The additional separable processing requires additional time anc materials, and the price is increased accordingly, as shown in the table. Assume that Johnston pro- duces only for specific customer orders, so there is no beginning or ending inventory. Assume als that all of Johnston's customers requested the heat-resistant version of the products so that all produc tion required additional separable processing. Total joint cost for the three products is $3,500,000. A101 A204 B216 115,000 175,000 2$ Gallons sold 135,000 14 10 12 Final sales price per gallon Price at split-off Separable processing cost 10 10 $550,000 $125,000 $625,000

Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are showr in the following table. Most of Johnston's customers ask for a special blend of the three products which improves heat-resistance. The additional separable processing requires additional time anc materials, and the price is increased accordingly, as shown in the table. Assume that Johnston pro- duces only for specific customer orders, so there is no beginning or ending inventory. Assume als that all of Johnston's customers requested the heat-resistant version of the products so that all produc tion required additional separable processing. Total joint cost for the three products is $3,500,000. A101 A204 B216 115,000 175,000 2$ Gallons sold 135,000 14 10 12 Final sales price per gallon Price at split-off Separable processing cost 10 10 $550,000 $125,000 $625,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Having trouble with prior chapter work still and we are moving on to another chapter.
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