Answered: Which of the products should be…

Which of the products should be processed further? A. Product 101 only B. Product 303 only C. Product 202 only D. Product 101 and 202

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CMA

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Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses the physical volume method to allocate joint costs of 22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? a. B-40 only b. J-60 only c. H-102 only d. B-40 and H-102 only
Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were 50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, 18,000; unders, 23,040. Overs sell for 2.00 per unit; unders sell for 3.14 per unit. Required: 1. Allocate the 50,000 joint costs using the estimated net realizable value method. 2. Suppose that overs could be sold at the split-off point for 1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations.
Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?
Integrity Manufacturing Company makes three products that can either be sold or processed further and then sold. The cost associated with the Bacolod joint process is 240,000. Units SP at split off Separable cost Final SP101 15,000 6.00 2.00 8.50202 20,000 4.00 1.00 6.00303 25,000 4.00 1.50 5.50Per unit, Product 101 weighs 3 ounces, Product 202 weighs 2 ounces, and Product 303 weighs 3 ounces. The joint cost allocated to Product 103 using weight in allocating joint cost is A.150,000 B. 240,000 C. 67,500 D. 112,500
Honesty Manufacturing Company makes three products that can either be sold, or processed further and then sold. The cost associated with the Bacolod joint process is P240,000. Units SP at split off Separable cost Final SP101 15,000 P6.00 P2.00 P8.50202 20,000 4.00 1.00 6.00303 25,000 4.00 1.75 5.50Per unit, Product 101 weighs 3 ounces, Product 202 weighs 2 ounces, and Product 303 weighs 3 ounces. Which of the products should be processed further?
Firm X has a production process that has a total joint cost of $14,000. At the split-off point, there are 1,000 pounds of Product 1and 3,000 pounds of Product 2 What is the cost per pound of Product 1 using the physical measure method? Multiple Cholce $3.00. $3.50. $4.00. $4.50. $4.25.
Cledus and Bandit, LLC is a small production facility in Foley, Alabama that produces three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and then sold. 10,000 units of each product are manufactured. The following information is available for the three products: Product Sales Valueat Split-off Separable ProcessingCosts after Split-off Sales Valueat Completion A $12 $9 $21 B 10 4 17 C 15 6 19 If Product A is processed beyond the split-off point, profit will: Group of answer choices remain unchanged increase by $210,000 increase by $ 90,000 increase by $120,000
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?
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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…
Cooper & Thief is a small production facility in Vancouver that manufactures three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and then sold. 10,000 units of each product are manufactured. The following information is available for the three products: Product Sales Valueat Split-off Separable ProcessingCosts after Split-off Sales Valueat Completion A $12 $9 $21 B 10 4 17 C 15 6 19 To maximize profits, which products should Cooper & Thief process further? Group of answer choices Product A only Product B only Product C only Products A, B, and C
Previtz Company produces two products from a joint process: X and Z. Joint Processing Costs for this production costs for this production cycle are P 8,000 Sales Price Disposal Cost Further Final Sale Per Yard at Per yard at Processing Price per Yards Split off Split Off Per Yard Yard X 1,500 P 6.00 3.50 P 1.00 P 7.50 Y 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 cost will be borned by the buyer Requirement…