Arvin, Inc., produces two products, ins and outs, in a single process. The joint costs of this process were $77,300, and 14,000 units of ins and 36,000 units of outs were produced. Separable processing costs beyond the split-off point were as follows: ins, $17,500; outs, $9,000. Ins sell for $8.00 per unit; outs sell for $15.00 per unit. Required: Allocate the $77,300 joint costs using the estimated net realizable value method. Suppose that ins could be sold at the split-off point for $7.00 per unit. Should Arvin sell ins at split-off or process them further? Show supporting computations. Which of the four data analytic types—descriptive, diagnostic, predictive, or prescriptive—is used to determine whether Arvin should process further or sell at the split-off point?
Arvin, Inc., produces two products, ins and outs, in a single process. The joint costs of this process were $77,300, and 14,000 units of ins and 36,000 units of outs were produced. Separable
Required:
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Allocate the $77,300 joint costs using the estimated net realizable value method.
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Suppose that ins could be sold at the split-off point for $7.00 per unit. Should Arvin sell ins at split-off or process them further? Show supporting computations. Which of the four data analytic types—descriptive, diagnostic, predictive, or prescriptive—is used to determine whether Arvin should process further or sell at the split-off point?
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