Product W can be sold at the split-off point for P5.60 per unit. Product P either can be sold at the split-off point for P4.75 per unit or it can be further processed and sold for P7.20 per unit. If P is processed further, additional processing costs of P3.10 per unit will be incurred. 11) If P is processed further and then sold, rather than being sold at the split-off point, the change in monthly net operating income would be a: a. P147,000 decrease c. P39,000 increase b. P147,000 increase d. P39,000 decrease 2What would the selling price per unit of Product P need to be arter processing in order for ABC Company to be economically

Product W can be sold at the split-off point for P5.60 per unit. Product P either can be sold at the split-off point for P4.75 per unit or it can be further processed and sold for P7.20 per unit. If P is processed further, additional processing costs of P3.10 per unit will be incurred. 11) If P is processed further and then sold, rather than being sold at the split-off point, the change in monthly net operating income would be a: a. P147,000 decrease c. P39,000 increase b. P147,000 increase d. P39,000 decrease 2What would the selling price per unit of Product P need to be arter processing in order for ABC Company to be economically

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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Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $4 per liter. Product G can then be sold for $14 per liter. Determine whether Product F should be sold or processed further into Product G. • Calculate the net advantage (disadvantage) of further processing • Use a negative sign with your answer to indicate a net disadvantage (if applicable). $0 per liter
Waterway Industries produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period: Sales Value Additional at Split-off Variable Costs Further Processing Sales Value after Product $24000 $178000 Green lumber $159600 27500 169400 121000 Rough lumber 128400 19300 Sawdust 101000 What is the increase in profit if the appropriate products are processed further? O $23400 O $251000 O $29000 O $94200 2:56 PM 11/10/2019 hp end home ins prt se delete 4 hum ock + backspac
XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost $10, and Sales (Units): 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6.000. Should XYZ company make the change? Select one Oa.No. because sales will drop by 3.000 units. Ob.Yes, the company will be better off by 54,000. 2E No. because the company will be worse off by $22,000. Od itis impossible to judge because additional information is needed. Oe.No. because the company will be worse off by 54.000.
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Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional processing for $4.21 per pound or processed further into Product B at an additional cost of $0.35 per pound. Product B can be sold for $4.36 per pound Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Process Further into Product B(Alternative 2) Differential Effect Sell Product A (Alternative 1) on Income (Alternative 2) $1 Revenues, per unit Costs, per unit Income (Loss), per unit Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)? Sell Product A Process further into Product B
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Product F is produced for $3.42 per pound. Product F can be sold without additional processing for $4.07 per pound or processed further into Product G at an additional cost of $0.43 per pound. Product G can be sold for $4.42 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Product F (Alt. 1) or Process Further into Product G (Alt. 2)November 15 SellProduct F(Alternative 1) ProcessFurther intoProduct G(Alternative 2) DifferentialEffect(Alternative 2) Revenues, per unit $fill in the blank 15afe8f7b050fa7_1 $fill in the blank 15afe8f7b050fa7_2 $fill in the blank 15afe8f7b050fa7_3 Costs, per unit fill in the blank 15afe8f7b050fa7_4 fill in the blank 15afe8f7b050fa7_5 fill in the blank 15afe8f7b050fa7_6…
Bollozos Afterlife Corporation's Division A manufactures and sells product Brand X, which is used in refrigeration systems. Per-unit variable manufacturing and selling costs amount to P20 and P5, respectively The Division can sell this item to external domestic customers for P36 or, alternatively, transfer the product to the company's Division B. Division B is currently purchasing a similar unit from Taiwan for P33. Assume use of the general transfer-pricing rule. •What is the most that the Division B would be willing to pay the Division A for one unit? • If Division A had excess capacity, what transfer price would the Division's management set? · If Division A had no excess capacity, what transfer price would the Divisions management set? If Division A had no excess capacity, what transfer price would the Divisions management set assuming that Division A was able to reduce the variable cost of internal transfers by P4 per unit
Process or Sell Product A is produced for $3.54 per pound. Product A can be sold without additional processing for $4.14 per pound or processed further into Product B at an additional cost of $0.45 per pound. Product B can be sold for $4.58 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Sell Product A(Alternative 1) Process Furtherinto Product B (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit $fill in the blank 694e3df9c00701f_1 $fill in the blank 694e3df9c00701f_2 $fill in the blank 694e3df9c00701f_3 Costs, per unit fill in the blank 694e3df9c00701f_4 fill in the blank 694e3df9c00701f_5 fill…
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