SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000.The products can be sold as they leave the process, or they can be processed further and sold.The cost accountant has provided you with the following information:IITSeparable FurtherProcessing CostsSales PriceSales Price AfterProductUnit Volumeat Split-OffFurther Processing3,0004,0008,000P1015P60,00050,00090,000P25Y302035Assume that all processing costs are variable costs.Required:/Which products should SAMCIS sell at split-off, and which products should be processed further?

To answer this question that which product to be processed further and which product to be sold at…

SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: IIT' Separable Further Processing Costs P60,000 50,000 90,000 Sales Price Sales Price After Product Unit Volume at Split-Off Further Processing P10 P25 3,000 4,000 8,000 Y 15 30 20 35 Assume that all processing costs are variable costs. Required: Which products should SAMCIS sell at split-off, and which products should be processed further?

SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: IIT' Separable Further Processing Costs P60,000 50,000 90,000 Sales Price Sales Price After Product Unit Volume at Split-Off Further Processing P10 P25 3,000 4,000 8,000 Y 15 30 20 35 Assume that all processing costs are variable costs. Required: Which products should SAMCIS sell at split-off, and which products should be processed further?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Tango Company produces joint products M, N, and T from a joint process. This information concerns a…

A: Joint Cost :— It is the cost that is incurred in the manufacturing of two or more joint products.…

Q: Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter…

A: It is pertinent to note that gross profit is the residual amount that is obtained by reducing the…

Q: Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year…

A: The amount of joint cost assigned to Product A is $52,800.Explanation:To allocate joint costs using…

Q: Required: a. Assuming that joint product costs are allocated using the physical quantities (units…

A: Please see Step 2 for required information.

Q: Wildhorseuses DM of $47,000 and incurs DL and MOH costs of $55,000 and $27,000, respectively, in a…

A: Joint costs means the costs incurred in producing multiple products simultaneously from the same raw…

Q: ABC Company produces joint products X and Y, each of which incurs separable production costs after…

A: Joint cost refers to costs that have expenses for producing more than one product. Generally, every…

Q: Tango Company produces joint products M, N, and T from a joint process. This information concerns a…

A: Joint Cost :— It is the cost that is incurred in the manufacturing of two or more joint products.…

Q: Costs re

A: Relevant cost is essentially avoidable costs that are incurred only when making particular business…

Q: Joint products A and B emerge from common processing that costs $80,000 and yields 5,000 units of…

A: Step 1: Define Cost Allocation:The costs incurred by a firm can be broadly categorized into direct…

Q: Joint Cost Allocation-Market Value at Split-off Method Gripturn Inc. produces two different styles…

A: The objective of the question is to allocate the joint production costs to the two different styles…

Q: a for the product alpha are shown: produced from the process 600 units Allocated share of joint…

A: Answer :Price per unit after further processing : Price per unit after further processing =(Cost of…

Q: Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product…

A: The joint cost is the cost when a firm manufactures various goods and the cost function is not…

Q: spi processing requires no special facilities, and production costs of further processing are…

A: The Net Realizable Value (NRV) approach is a valuation methodology that determines the worth of…

Q: Tango Company produces joint products M, N, and T from a joint process. This information concerns a…

A: Joint Cost :— It is the cost that is incurred in the manufacturing of two or more joint products.…

Q: Dairyco has joint costs totaling $5,500. Use the Physical Output, Net Realizable Value, and Sales…

A: Joint Costs can be allocated under any of the following three methods, Physical Output Net…

Q: Coggin Company gathered the following data about the three products that it produces: Estimated…

A: DIFFERENTIAL ANALYSISDifferential analysis is a decision-making method that examines the net effects…

Q: SEARCH Split Company produces three products — X, Y, and Z — from a joint process. Each…

A: JOINT PRODUCT Joint Product as two or more products seperated in the course of Processing each…

Q: please help me with this question

A: Definition of Joint Processing and Split-off Point:In a joint process of production, one input…

Q: Company manufactures products R, S, and T from a joint process. The following information is…

A: Calculation of sales value at split-off for products R $420,000*($ 100,000 / $250,000) = $168,000

Q: Elsa Products processes Chem-Z into two products: Chem-A and Chem-B. Chem-Z costs $43,600 per batch.…

A: Physical Method of Joint Cost Allocation :— It is one of the methods used to allocate joint cost…

Q: of IDR 345,000,000 to each product and calculate the cost / unit of each product if PT DZAKI uses…

A: Cost accounting A method of managerial accounting under which the total cost of production is…

Q: Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product…

A: Joint Cost are the cost which is incur in a single process where two or more products are produced.…

Question

100%

SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000.
The products can be sold as they leave the process, or they can be processed further and sold.
The cost accountant has provided you with the following information:
IIT
Separable Further
Processing Costs
Sales Price
Sales Price After
Product
Unit Volume
at Split-Off
Further Processing
3,000
4,000
8,000
P10
15
P60,000
50,000
90,000
P25
Y
30
20
35
Assume that all processing costs are variable costs.
Required:/
Which products should SAMCIS sell at split-off, and which products should be processed further?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Decision to Sell before or after additional processing

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Listmann Corporation processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Sales Value with no further Additional Processing Sales Value after further Product Processing Costs processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 Basic 90 45 1,800 180 Which product(s) should not be processed further?
Dinesh
Current Attempt in Progress A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E Your answer is partially correct. F (b1) Number of Units Produced Incremental profit (loss) 4,350 5,530 1,900 Product D Selling Price at Split-Off $10.10 $ 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product E Additional Processing Costs $ $16,995 21,509 10,790 Product F $
PT Y manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. The company decided to further process the three products before they were sold. The number of units produced (based on regular sales), the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E F Number of Units Produced 4,000 6,000 2,000 Selling Price at Split-Off Additional Processing Costs Selling Price after Processing $25.00 $26.60 $34.40 $14,000 $20,000 $9,000 $30.00 $31.20 $37.60 Instructions 1) Allocate the $200,000 joint cost to product D, E, and F using these methods: a. Physical-measure method (2%) b. NRV method (5%) 2) Which information is relevant to the decision on whether or not to process the products further? (2%). Explain why this information is relevant (2%). 3) Which product(s) should be processed further and which should be sold at…
Division A of SLG Company produces a part it sells to other companies. Sales and cost data for the part are as follows: Capacity in units 60,000 units Selling price per unit O $27 per unit O $39 per unit O $36 per unit O $41 per unit Variable cost per unit O None of the above. Fixed cost per unit at capacity Division B, another division of SLG Company, would like to buy this part from Division A. Division B is currently purchasing the part from an outside source at $38 per unit. If Division A sells to Division B, then $1 in Division A's variable costs can be avoided. Assume Division A has enough idle capacity to handle all of Division B's needs without any increase in fixed costs and without interfering with outside sales. According to the transfer pricing guidelines, what is the lowest acceptable transfer price from the perspective of Division A? $40 per unit $28 per unit $9 per unit
Sunland Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Product 10 Product 12 Product 14 (c) Product Your answer is partially correct. Product 10 Product 12 Product 14 $ Sales Value at Split-Off Point $59,700 $ 15,800 $ 55,400 Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) Cost to Process Further eTextbook and Media $100,100 30,800 149,700 Sales Value after Further Processing $191,000 34,700 Decision 214,000 Should be processed further Should be sold at the split-off point Should be processed further Assistance Used
answer in text form please (without image)