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Assume XYZ Company makes all sell or process further decisions correctly. Calculate the amount of net income reported by XYZ Company last month.

Assume XYZ Company makes all sell or process further decisions correctly. Calculate the amount of net income reported by XYZ Company last month.

FINANCIAL ACCOUNTING
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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XYZ Company makes two products, M and T, in a joint process. Each product may be sold at the split-off point or processed further and then sold. Information concerning the two products for the most recent month appears below: Units available at the split-off point .. Allocated joint costs Selling price after further processing Selling price at the split-off point Additional processing costs..... Units available at the split-off point Allocated joint costs ********** Selling price after further processing Selling price at the split-off point Additional processing costs *** ** Product M 45,000 units $91,000 $8.80 per unit $6.20 per unit $3.10 per unit Product T 70,000 units $91,000 $6.70 per unit $3.45 per unit $2.90 per unit The further processing of Product T will result in a loss of 6,000 units (i.e., only 64,000 units of Product T will be available for sale if it is processed further). The further processing of Product M will not result in the loss of any units. Assume XYZ Company makes all sell or process further decisions correctly. Calculate the amount of net income reported by XYZ Company last month.
Transcribed Image Text:XYZ Company makes two products, M and T, in a joint process. Each product may be sold at the split-off point or processed further and then sold. Information concerning the two products for the most recent month appears below: Units available at the split-off point .. Allocated joint costs Selling price after further processing Selling price at the split-off point Additional processing costs..... Units available at the split-off point Allocated joint costs ********** Selling price after further processing Selling price at the split-off point Additional processing costs *** ** Product M 45,000 units $91,000 $8.80 per unit $6.20 per unit $3.10 per unit Product T 70,000 units $91,000 $6.70 per unit $3.45 per unit $2.90 per unit The further processing of Product T will result in a loss of 6,000 units (i.e., only 64,000 units of Product T will be available for sale if it is processed further). The further processing of Product M will not result in the loss of any units. Assume XYZ Company makes all sell or process further decisions correctly. Calculate the amount of net income reported by XYZ Company last month.
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