Profit from Processing Further Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows: Units produced Joint costs Sales value before additional processing Additional costs for further processing Sales value if processed further Differential benefit (loss) A O Product A O Product B O Product C O None of the above O All of the above A 34,800 $ 417,600 696,000 81,200 812,000 Required: 2a. For each of the three products (A, B, and C), calculate the differential benefit (loss) from processing the product after the split-off point rather than selling the product at the split-off point. (Loss amounts should be indicated with a minus sign.) B B 23,200 $ 174,000 290,000 58,000 348,000 C 2b. Which, if any, of products A, B, and C should be processed further and then sold? C 11,600 $ 104,400 174,000 34,800 203,000 Total 69,600 $ 696,000 1,160,000 174,000 1,363,000

Profit from Processing Further Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows: Units produced Joint costs Sales value before additional processing Additional costs for further processing Sales value if processed further Differential benefit (loss) A O Product A O Product B O Product C O None of the above O All of the above A 34,800 $ 417,600 696,000 81,200 812,000 Required: 2a. For each of the three products (A, B, and C), calculate the differential benefit (loss) from processing the product after the split-off point rather than selling the product at the split-off point. (Loss amounts should be indicated with a minus sign.) B B 23,200 $ 174,000 290,000 58,000 348,000 C 2b. Which, if any, of products A, B, and C should be processed further and then sold? C 11,600 $ 104,400 174,000 34,800 203,000 Total 69,600 $ 696,000 1,160,000 174,000 1,363,000

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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