Alpesh Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, theproduct manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: thesoybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oilcan then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities producedand sales values at the split-off point are as follows.Quantity of soy oil13,200 poundsQuantity of soymeal46,800 poundsSales price of soy oilSales price of soy meal$38.00 per pound$1.50 per pound(a)Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places,e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)Soy OilAllocated joint costsSASoymeal

The objective of the question is to allocate the joint costs of $434,000 to the soy oil and the…

Answered: Marigold There produces a variety of…

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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Brik, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brik can sell all the toothbrushes it can produce, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: E (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,900 machine hours per month. The plant can manufacture either 62 standard electric toothbrushes or 24 deluxe electric toothbrushes per machine hour. Read the requirements. ..... Requirement 1. Identify the constraining factor for Brik. Brik's constraint is Requirement 2. Prepare a product mix analysis to show which product line to emphasize. Deluxe Standard Toothbrushes Toothbrushes Data table Contribution margin per Per Unit Deluxe Standard Decision: Toothbrush Toothbrush Sales price 2$ 82 $ 54 22 18 Variable costs Emphasize the Brik standard electric toothbrush $ 60 $ 36…
Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt can sell all the toothbrushes it can produce, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: E (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,000 machine hours per month. The plant can manufacture either 50 standard electric toothbrushes or 23 deluxe electric toothbrushes per machine hour. Read the requirements. Requirements Requirement 1. Identify the constraining factor for Britt. Britt's constraint is 1. Identify the constraining factor for Britt. 2. Prepare an analysis to show which productline to emphasize. direct materials labor hours Print Done machine hours Data Table Per Unit Deluxe Toothbrush Standard Toothbrush Sales price 82 $ 52 Variable costs 25 18 Contribution margin $ 57 $ 34 Contribution margin ratio…
Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes. deluxe and standard. Because Britt can sell all the toothbrushes it can produce, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: E (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,000 machine hours per month. The plant can manufacture either 50 standard electric toothbrushes or 23 deluxe electric toothbrushes per machine hour Read the requirements. Requirement 1. Identify the constraining factor for Britt. Britt's constraint is Data Table direct materials labor hours Per Unit machine hours Deluxe Standard Toothbrush Toothbrush 82 $ 52 Sales price 25 18 Variable costs 57 $ 34 Contribution margin 69 5% 65.4% Contribution margin ratio Print Done Requirements 1. Identify the constraining factor for Britt. 2. Prepare an analysis to show which product line to…
Your Corporation processes sugar beets in batches. A batch of sugar beets costs $45 to buy from farmers and $15 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $40. The beet juice can be sold as is for $40 or processed further for $12 to make the end product refined sugar that is sold for $65. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? O A. $(63) O B. S(63) OC. S( 3) O D.$ 10 O E. $ 13
At Modern Lumber Inc, Moise Ngwenya the producer of apple crates sold to growers, has been ablewith his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs perday, and each log requires 3 labor-hours to process. He believes that he can hire a professionalbuyer who can buy a better-quality log at the same cost. If this is the case, he can increase productionto 260 crates per 100 logs. His labour hours will increase by 8 hours per day. What will be the impacton productivity (measured in crates per labor-hour) if the buyer is hired?
Blue Skies Inc. is a retail gardening company that is piloting a new strategic initiative aimed at increasing gross profit. Currently, the company’s gross profit is 25% of sales, and its target gross profit percentage is 30%. The company’s current monthly sales revenue is $600,000.The new initiative being piloted is to produce goods in-house instead of buying them from wholesale suppliers. Its in-house production process has two procedures. The makeup of the costsof production for Procedure 1 is 40% direct labor, 45% direct materials, and 15% overhead. The makeup of the costs of production for Procedure 2 is 60% direct labor, 30% direct materials, and 10% overhead. Assume that Procedure 1 costs twice as much as Procedure 2.Instructions1. Determine what the cost of labor, materials, and overhead for both Procedures 1 and 2 wouldneed to be for the company to meet its target gross profit.2. The company’s actual labor cost is $114,000 for Procedure 1. Determine the actual cost of…
Your Corporation processes sugar beets in batches. A batch of sugar beets costs $625 to buy from farmers and $275 to crush in the company's plant. Two intermediate products, beet fiber (750 units) and beet juice (250 units), emerge from the crushing process. The beet fiber can be sold as is for $20 or processed further for $18 to make the end product industrial fiber that is sold for $45. The beet juice can be sold as is for $42 or processed further for $24 to make the end product refined sugar that is sold for $62. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? Group of answer choices $3,975 $6,000 $4,250 ($4,250) $5,250
Imagine you are a manager of a snack food company. You need to decide whether you should manufacture a new mozzarella cheese curl or purchase it from another manufacturer and re-sell it to your customers. Consider the details below: You've already spent $150,000 on research and development costs to produce this new product in house. • Whether you manufacturer the cheese curl or buy from another manufacturer, you plan to support this new product with $75,000 in advertising and promotions. • If you decide to manufacturer the product, you would need to hire a line manager ($60,000 annual salary) Whether you manufacturer the cheese curl or buy from another manufacturer, you would still need to pay rent on the factory ($$72,000 annually) If you decide to manufacturer the product, raw materials and packaging would cost $0.50 per bag. • If you purchase or manufacture the product, you would need to pay a sales representative $0.05 per bag in sales commissions. If you purchased the product…
Data table Milk Ghee, byproduct Production (in gallons) 580,000 13,000 Sales (in gallons) Selling Price per Gallon 556,800 $ 12,350 $ 1.00 0.60
Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue: 1(Click the icon to view the sales revenue amounts and additional information.) Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response. Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate input box.) Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates Revenue Less: Additional processing costs Net benefit…
Owly Corporation’s agriculture division currently produces their own soil mix to grow the plants they sell in. Owly currently makes 200,000 cubic meters of soil mix a year. Each cubic meter of soil mix has direct labour costs of $1.50, direct material costs of $3.15, variable overhead costs of $0.75, and fixed overhead costs of $0.70 for a total cost of $6.10 per cubic meter. An outside supplier has offered to sell Owly soil mix for $5.75 per cubic meter. If Owly purchases the soil mix, 25% of the fixed manufacturing overhead will be eliminated, the remaining 75% will still exist.A. What is the net dollar advantage (disadvantage) of purchasing the soil mix rather than making it?B. What is the maximum amount Owly is willing to pay an outside supplier per cubic meter (to the cent) for the soil mix if the supplier commits to supplying all 200,000 cubic meters?C. After one month of greenhouse growing time Owly can produce 100,000 four inch pot basil plants that can be sold for $2.20 each.…
Cran Health Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting’s output is converted into cranberry juice by the processing division, and the juice is sold to large beverage companies that produce cranberry juice blends. The processing division has a yield of 500 gallons of juice per 1,000 pounds of cranberries. Cost and market price data for the two divisions are as follows: Assume that Pat Borges, CEO of Cran Health, had mandated a transfer price equal to 225% of full cost. Now he decides to decentralize some management decisions and sends around a memo that states the following: “Effective immediately, each division of Cran Health is free to make its own decisions regarding the purchase of direct materials and the sale of finished products.” Q. Borges feels that a dual transfer-pricing policy will improve goal congruence. He suggests that transfers out of the harvesting division be made at…

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