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joint products should be sold as is, or processed

joint products should be sold as is, or processed

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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3.) Sweet Mandarines processes different types of mandarines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. uwm m w w w w wwm ww u ww Sales Value at Allocated Joint Cost to Process Sales Value of w w ww m Split-Off point Costs Further Processed Product Larco $200,000 $40,000 $110,000 $330,000 Marco 300,00 60,000 75,000 400,0 Narco 400,000 80,000 250,000 600,000 Determine whether each of the three joint products should be sold as is, or processed further. ww m m w
Transcribed Image Text:3.) Sweet Mandarines processes different types of mandarines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. uwm m w w w w wwm ww u ww Sales Value at Allocated Joint Cost to Process Sales Value of w w ww m Split-Off point Costs Further Processed Product Larco $200,000 $40,000 $110,000 $330,000 Marco 300,00 60,000 75,000 400,0 Narco 400,000 80,000 250,000 600,000 Determine whether each of the three joint products should be sold as is, or processed further. ww m m w
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