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In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $40,000 per year. The company allocates these costs to the joint products on the bas of their total sales value at the split-off point. These sales values are as follows: raw sugar, $20,000; brown sugar, $20,000; and whit sugar, $21,000. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The addition processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Additional Processing Costs $ 21,000 $ 14,000 $ 6,000 Incremental profit (loss) Sales Value. $40,000 Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar $35,000 $41,000 Brown Sugar White Sugar

In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $40,000 per year. The company allocates these costs to the joint products on the bas of their total sales value at the split-off point. These sales values are as follows: raw sugar, $20,000; brown sugar, $20,000; and whit sugar, $21,000. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The addition processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Additional Processing Costs $ 21,000 $ 14,000 $ 6,000 Incremental profit (loss) Sales Value. $40,000 Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar $35,000 $41,000 Brown Sugar White Sugar

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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Book rint rences In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $40,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: raw sugar, $20,000; brown sugar, $20,000, and white sugar, $21,000. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Additional Processing Costs $ 21,000 $ 14,000 $ 6,000 Incremental profit (loss) Sales Value Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar $40,000 $35,000 $41,000 Brown Sugar < Prev White Sugar 9 of 13 Next >
Transcribed Image Text:Book rint rences In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $40,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: raw sugar, $20,000; brown sugar, $20,000, and white sugar, $21,000. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Additional Processing Costs $ 21,000 $ 14,000 $ 6,000 Incremental profit (loss) Sales Value Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar $40,000 $35,000 $41,000 Brown Sugar < Prev White Sugar 9 of 13 Next >
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