Provide solution for this question Lisa is tasked with helping her supervisor decide which method touse when accounting for their company's by-product and two mainproducts, all three of which result from a joint process. At the endof the joint process, the by-product is worth $1,000, Product T isworth $7,638, and Product W is worth $12,462. The joint costsamount to $4,800. Lisa's company historically uses the sales valueat split-off method to allocate joint costs. If all of these productsare sold by the end of the year, how much gross margin will Lisareport for her company if she uses the production method toaccount for by-products? (Round to 2 decimal places.)

Step 1: Define Joint ProductsWhen two or more products are produced simultaneously in a single…

Answered: Lisa is tasked with helping her…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. 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 $178,800 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. Spock Uhura Sulu Sales Value at Split-Off Point $211,000 299,200 455,600 Allocated Joint Costs Incremental profit (loss) $ $39,700 59,800 79,300 Cost to Process Further $110,800 Spock 85,200 250,000 Sales Value of Processed Product $300,100 400,200 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 800,800 Uhura Sulu

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