Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. Products M-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,700 pounds of Gen-10 with a cost of $170,000. Additional information regarding a batch follows: Product M-4 M-5 BYP Unit Sales Value at Split-off $ 10.25 19.50 0.90 Sanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. If Processed Additional Costs (Per Unit) $ 4.30 9.50 ΝΑ Units Produced 30,000 37,800 5,000 Further Sales Value (Per Unit) $17.50 29.50 ΝΑ Required: Under these assumptions, the following product(s) should be processed further and then sold:

Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. Products M-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,700 pounds of Gen-10 with a cost of $170,000. Additional information regarding a batch follows: Product M-4 M-5 BYP Unit Sales Value at Split-off $ 10.25 19.50 0.90 Sanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. If Processed Additional Costs (Per Unit) $ 4.30 9.50 ΝΑ Units Produced 30,000 37,800 5,000 Further Sales Value (Per Unit) $17.50 29.50 ΝΑ Required: Under these assumptions, the following product(s) should be processed further and then sold:

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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