Can you please give answer? The Armstrong Company uses a joint process to produceproducts A, B, C, and D. Each product may be sold at itssplit-off point or processed further. Joint processingcosts for a single batch of joint products are $120,000.Other relevant data are:AdditionalSalesSales Value atProductProcessingValue AfterSplit-OffCostsProcessingA$25,000$12,000$48,000B24,00016,00036,000C44,00028,00070,000D17,00010,00032,000Determine when each product should be sold. Showcalculations to support your answers.

Step 1: Introduction to the Further Processing CostIn the case of joint products, it is important…

Answered: The Armstrong Company uses a joint…

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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Kapangan Inc. manufactures products R, S and T from a joint process. Additional information follows: wwwwww u www R ТОTAL Units 8,000 4,000 14,000 P18,000 P120,000 ? P200,000 2,000 Joint Costs ? ? Sales value @ split-off P120,000 ? Further Processing costs P14,000 P10,000 P6,000 P30,000 Sales value of FG P140,000 Р60,000 P50,000 P250,000 Using the sale value at split-off, how much is the: joint cost allocated to S?
Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
QUIK Manufacturing Company Ltd produces two products from a joint process. Informationabout the two joint products is as follows:Information Product A Product BBudgeted production (in kg) 2 000 4 000Selling price per kg at split-off $ 10 $ 20Additional processing costs per kgafter split-off (all variable)$ 15 $ 30Selling price per kg after furtherprocessing$40 $50The cost of the joint process is $ 90 000.Required:a) Which of QUIK company’s joint products should be sold at split-off point? Please supportyour answer with the necessary calculations. b) Which of QUIK company’s joint products should be processed further? please answer the same with working allocations
Presley produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B, C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: Units Immediate Sales Price Later Sales Prices Unit cost of Further Processing 1 5,000 $15 $20 $6 2 17,500 $20 $25 $4 3 10,000 $25 $32 $3 What is the total benefit the company would experience by following your recommendations vs. not processing any further? Hint: Give the sum of the benefits from each product you have chosen to process further.
Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is as follows: Product 1 Product 2 Product 3 Sales Price at split-off point $16 $12 $5 Allocated joint costs $6,000 $6,000 $6,000 Sales Price after further processing $20 $18 $14 Cost of further processing $6,360 $1,420 $2,650 Product Quantity 1,000 lb. 1,000 lb. 1,000 Ib. Q. What would be the additional amount of profit that Corp. would gain from further processing the product(s) that is/are more profitable to process further rather than be sold at the split-off point?
Joint products A and B emerge from common processing that costs $114,000 and yields 3,800 units of Product A and 2,600 units of Product B. Product A can be sold for S 260 per unit. Product B can be sold for $190 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values? a. $71000 b. $76000 c. $73500 d. $66000
Benjamin CompanyBenjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales priceper yard atsplit-off Disposalcost per yard atsplit-off Furtherprocessingper yard Final saleprice peryard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using a physical measure, what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)? Select one: a. $5,500 b. $4,757 c. $4,000 d. $3,243
Icy Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs 22400 19600 42000 Sales value at split-off point 32,000 28,000 60,000 Costs of further processing 11600 25,300 36,900 Sales value after further processing 40,800 54,200 95,000 Required:a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? b) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? c) What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?d) What is the minimum amount the company…
Agao Chemical Company manufactures three chemicals (NY29, TX38, and CA55) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: NY29 TX38 CA55 Sales value at split-off point P5,000 P16,000 P12,000 Allocated joint costs P6,000 P6,000 P6,000 Sales value after further processing P9,000 P20,000 P18,000 Cost of further processing P2,000 P5,000 P3,000 For which product(s) above would it be more profitable for Agao to sell at the split-off point rather than process further?
A company currently produces three products from a joint process. The joint process has total costs of $515,000 per month. All three products, A, B, and C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: Product A B Units 4,500 18,000 10,500 Immediate Sales Price $18 20 27 Later Sales Unit Cost of Further Processing $ 2.00 4.00 4.00 Price $ 19 25 33 Required: a-1. Should Product A be sold immediately or sold after processing further? a-2. How much will the decision affect profit? b-1. Should Product B be sold immediately or sold after processing further? b-2. How much will the decision affect profit? c-1. Should Product C be sold immediately or sold after processing further? c-2. How much will the decision affect profit?
Johns Company manufactures products R, S, and I from a joint process. The following information is available: Product R. Total Units produced 12,000 ? 24,000 ? $50,000 $200,000 ? $120,000 Sales value at split-off Joint costs $ 48,000 Sales value if processed further Additional costs if processed further $ 18,000 $14,000 $10,000 $ 42,000 $110,000 $90,000 $60,000 $260,000 Assuming that joint product costs are allocated using the relative-sales-value at split-off approach, what was the sales value at split-off for products R and S? Product R Product S $ 55,000 $ 63,000 $ 80,000 $ 91,000 A) $ 75,000 B) $81,000 C) $70,000 D) $83,000 E) $101,000 $ 92,000

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