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 $42.900 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, $20,900; brown sugar, $20,900; and white sugar, $22,000. 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 $ 21,400 $ 14,700 $ 6,600 Incremental profit (loss) Sales Value $41,400 $37,400 $44,200 Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar 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 $42.900 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, $20,900; brown sugar, $20,900; and white sugar, $22,000. 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 $ 21,400 $ 14,700 $ 6,600 Incremental profit (loss) Sales Value $41,400 $37,400 $44,200 Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar Brown Sugar White Sugar
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...
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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 $42.900 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, $20,900; brown sugar, $20,900; and white
sugar, $22,000.
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
$ 21,400
$ 14,700
$ 6,600
Incremental profit (loss)
Sales
Value
$41,400
$37,400
$44,200
Required:
a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.)
Raw Sugar
Brown Sugar
White Sugar](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F254953d5-3f05-4313-80a5-20367750b470%2F81d067b8-a042-40b3-96fb-17cc31aa5e57%2F0yggv4s_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $42.900 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, $20,900; brown sugar, $20,900; and white
sugar, $22,000.
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
$ 21,400
$ 14,700
$ 6,600
Incremental profit (loss)
Sales
Value
$41,400
$37,400
$44,200
Required:
a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.)
Raw Sugar
Brown Sugar
White Sugar
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