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 2,760 pounds of Gen-10 with a cost of $248,400. Additional information regarding a batch follows: Unit Sales Value at Split-off $5.00 $6.00 10.00 16.00 NA 0.50 SAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product BYP as other income. Units Product Produced 60,720 38,640 13,800 M-4 M-5 BYP If Processed Further Additional Costs (Per Multiple Choice Unit) $ 2.00 4.00 ΝΑ Sales Value (Per Unit) Required: The joint cost allocated to product M-5 at Sanford Agricultural Chemicals for a given batch is:
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 2,760 pounds of Gen-10 with a cost of $248,400. Additional information regarding a batch follows: Unit Sales Value at Split-off $5.00 $6.00 10.00 16.00 NA 0.50 SAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product BYP as other income. Units Product Produced 60,720 38,640 13,800 M-4 M-5 BYP If Processed Further Additional Costs (Per Multiple Choice Unit) $ 2.00 4.00 ΝΑ Sales Value (Per Unit) Required: The joint cost allocated to product M-5 at Sanford Agricultural Chemicals for a given batch is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 2,760 pounds of Gen-10 with a cost of $248,400. Additional
information regarding a batch follows:
If Processed Further
Additional
Costs (Per
Unit)
M-4
$ 5.00
$ 2.00
$6.00
M-5
4.00
10.00
0.50
16.00
NA
BYP
NA
SAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product BYP as other income.
Unit Sales
Units
Value at
Product Produced Split-off
60,720
38,640
13,800
Required:
The joint cost allocated to product M-5 at Sanford Agricultural Chemicals for a given batch is:
Multiple Choice
$151,800
Sales Value
(Per Unit)
$109,296
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