Compute the incremental benefit BOB Company produces three joint products from seaweed. At the split-off point, three basicproducts emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be soldat the split-off point or be processed further. If they are processed further, the resulting productscan be sold as delicacies to health food stores. Cost and revenue information is as follows:Sales Value and Additional Costs if Produced FurtherPounds Produced Sales Value at Split-Off Final Sales Value Additional CostProductSea Tea9,000Sea Paste4,800$60,00071,100$90,000$35,000160,00050,000Sea Powder 2,00070,00085,00014,000Compute the incremental benefit (cost) of further processing to these products.

Explanation: Under incremental benefit or cost analysis, the alternatives are analyzed to find out…

Answered: BOB Company produces three joint…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2CMA: The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the...

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BOB COMPANY PRODUCED 3 JOINT PRODUCTS
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Stahl Inc. produces three separate products from a common process costing $100,800. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Valueat Split-OffPoint Cost toProcessFurther Sales Valueafter FurtherProcessing Product 10 $60,400 $100,600 $190,000 Product 12 15,600 30,100 35,400 Product 14 55,500 150,800 214,500 Determine total net income if all products are sold at the split-off point. Net income $ eTextbook and Media Determine total net income if all products are sold after further processing. Net income $ eTextbook and Media Calculate incremental profit/(loss) and determine which products should be…
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Joint-cost allocation, sales value , physical measure, NRV methods. Tasty foods produces two types of microwavable products: beef- flavored ramen and shrimp- flavored . The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as stock, which tasty dumps at negligible costs in a local drainage area. In June 2017, the following data were reported for the production and sales of beef- flavored and shrimp-flavored ramen: Due to the popularity of its microwavable products, Tasty decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names special B and special S, respectively. Following are the monthly data for all the products:
Under the net realizable value method, what portion of the joint costs would be allocated to Seduction and Romance, respectively?
Stahl Inc. produces three separate products from a common process costing $100,300. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Valueat Split-OffPoint Cost toProcessFurther Sales Valueafter FurtherProcessing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900
The Bean Company provides fresh coffee beans for restaurants, hotels, and other food service companies. Bean offers three types of coffee beans: Premium, Gourmet, and Quality. Each of the three coffees is produced in a joint process in which beans are cleaned and sorted. The sorting process is the split-off point in this joint process, and the output is the three types of beans. The beans can be sold at the split-off point or processed further, with different types of roasting and additional sorting. The additional processing requires additional separable processing costs, as shown next. Separable processing requires no special facilities, and the production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processedbeyond split-off. Joint production costs for the year were $90,000,000.Sales values and costs needed to evaluate Bean’s production policy follow: Premium…

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