Exercise 11-40 (Algo) Sell or Process Further: Multiple Choice (LO 11-4)Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. ProductsM-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,800 pounds of Gen-10 with a cost of$175,000. Additional information regarding a batch follows:ProductM-4M-5BYPUnit SalesValue atUnitsProduced35,000 $ 11.2539,20020.505,5000.90Split-offIf Processed FurtherAdditionalCosts (PerUnit)$ 5.5510.75ΝΑSales Value(Per Unit)$18.7531.75ΝΑSanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to jointcosts.Required:Under these assumptions, the following product(s) should be processed further and then sold: OM-4.M-5.Both M-4 and M-5.Neither M-4 nor M-5.Cannot tell from the information given.

Incremental Analysis :— This analysis shows the comparison between two different alternatives.…

Exercise 11-40 (Algo) Sell or Process Further: Multiple Choice (LO 11-4) Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. Products M-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,800 pounds of Gen-10 with a cost of $175,000. Additional information regarding a batch follows: Product M-4 M-5 BYP Units Produced 35,000 39,200 5,500 Unit Sales Value at Split-off $ 11.25 20.50 0.90 If Processed Further Additional Costs (Per Unit) $ 5.55 10.75 ΝΑ Sales Value (Per Unit) $18.75 31.75 ΝΑ Sanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. Required: Under these assumptions, the following product(s) should be processed further and then sold:

Exercise 11-40 (Algo) Sell or Process Further: Multiple Choice (LO 11-4) Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. Products M-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,800 pounds of Gen-10 with a cost of $175,000. Additional information regarding a batch follows: Product M-4 M-5 BYP Units Produced 35,000 39,200 5,500 Unit Sales Value at Split-off $ 11.25 20.50 0.90 If Processed Further Additional Costs (Per Unit) $ 5.55 10.75 ΝΑ Sales Value (Per Unit) $18.75 31.75 ΝΑ Sanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. Required: Under these assumptions, the following product(s) should be processed further and then sold:

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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