Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 10EA
Ralston Dairy gathered this data about the two products that it produces:
Which of the products should be processed further?
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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on
the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Selling Price
$ 16 per pound
$ 8 per pound
$ 25 per gallon
Product
Quarterly Output
15,000 pounds
20,000 pounds
4,000 gallons
A
В
C
Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional
processing costs (per quarter) and unit selling prices after further processing are given below:
Additional
Processing
Costs
Product
$ 63,000
$ 80,000
$ 36,000
Selling Price
$ 20 per pound
$ 13 per pound
$ 32 per gallon
A
В
C
Required:
1. What is the financial advantage (disadvantage) of further processing each of the three…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
split-off point total $315,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on
the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Product
A
B
с
Selling Price
$13.00 per pound
$ 7.00 per pound
$19.00 per gallon
Product
A
B
с
Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional
processing costs (per quarter) and unit selling prices after further processing are given below:
Additional
Processing
Costs
Quarterly Output
11,600 pounds
18,200 pounds
2,800 gallons
$ 54,640
$ 77,580
$ 29,360
Selling Price
$17.40 per pound
$ 12.40 per pound.
$26.40 per gallon
Required:
1. What is the financial advantage (disadvantage) of further processing each…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Chapter 10 Solutions
Principles of Accounting Volume 2
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Ch. 10 - When should a segment be dropped? A. only when the...Ch. 10 - Youngstown Construction plans to discontinue its...Ch. 10 - Mallorys Video Supply has changed its focus...Ch. 10 - A company produces two products. E and F in...Ch. 10 - When operating in a constrained environment, which...Ch. 10 - Your roommate at school believes that all fixed...Ch. 10 - Explain how to differentiate short-term decisions...Ch. 10 - Felipes Restaurant and Pie Shop needs help...Ch. 10 - What factors must any company consider before...Ch. 10 - What are some of the qualitative issues that a...Ch. 10 - In The Trouble with Outsourcing, a Schumpeter...Ch. 10 - Many outsourced jobs have resulted in offshoring...Ch. 10 - What type of qualitative issues should management...Ch. 10 - In the decision by a grocery company that is...Ch. 10 - What is of key importance for a company whose...Ch. 10 - What is a general rule to remember with respect to...Ch. 10 - Garrison Boutique, a small novelty store, just...Ch. 10 - Derek DingIer conducts corporate training seminars...Ch. 10 - Bridget Youhzi works for a large firm. Her alma...Ch. 10 - Zena Technology sells arc computer printers for...Ch. 10 - Shelby Industries has a capacity to produce 45.000...Ch. 10 - Reubens Deli currently makes rolls for deli...Ch. 10 - Almond Treats manufactures various types of...Ch. 10 - Party Supply is trying to decide whether or not to...Ch. 10 - Underground Food Store has 4,000 pounds of raw...Ch. 10 - Ralston Dairy gathered this data about the two...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Ella Maksimov is CEO of her own marketing firm....Ch. 10 - You are trying to decide whether to take a job...Ch. 10 - You are working for a large firm that has asked...Ch. 10 - Dimitri Designs has capacity to produce 30,000...Ch. 10 - Aspen Enterprises makes award pins for various...Ch. 10 - Country Diner currently makes cookies for its...Ch. 10 - Oat Treats manufactures various types of cereal...Ch. 10 - The Party Zone is trying to decide whether or not...Ch. 10 - Berettis Food Mart has 6,000 pounds of raw pork...Ch. 10 - Balcom Dairy gathered this data about the two...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Artisan Metalworks has a bottleneck in their...Ch. 10 - Syntech makes digital cameras for drones. Their...Ch. 10 - Marcotti Cupcakes bakes and sells a basic cupcake...Ch. 10 - Ken Owens Construction specializes in small...Ch. 10 - Boston Executive. Inc., produces executive...Ch. 10 - Gent Designs requires three units of part A for...Ch. 10 - Trifecta Distributors has decided to discontinue...Ch. 10 - Extreme Sports sells logo sports merchandise. The...Ch. 10 - Hong Publishing has purchased Lang Publishing....Ch. 10 - Clarion Industries produces two joint products, Y...Ch. 10 - Quality Clothing, Inc., produces skorts and jumper...Ch. 10 - Ac Gems in the Rough, a jewelry company, the...Ch. 10 - Sports Specialists makes baseballs and softballs...Ch. 10 - Variety Artisans has a bottleneck in their...Ch. 10 - Mortech makes digital cameras for drones. Their...Ch. 10 - Cinnamon Depot bakes and sells cinnamon rolls for...Ch. 10 - Myrna White is a mobile housekeeper. The price for...Ch. 10 - Blake Cohen Painting Service specializes in small...Ch. 10 - Regal Executive, Inc., produces executive motor...Ch. 10 - Remarkable Enterprises requires four units of part...Ch. 10 - Colin OShea has a carpentry shop that employs 4...Ch. 10 - ZZOOM, Inc., has decided to discontinue...Ch. 10 - Strawberry Sweet Company makes a variety of jams...Ch. 10 - Laramie Industries produces two joint products, H...Ch. 10 - Jamboree Outfitters, Inc., produces pocket knives...Ch. 10 - Daisy Hernandez sells girls christening dresses...Ch. 10 - Dr. Detail is a mobile car wash. The price for a...Ch. 10 - At Stardust Gems, a faux gem and jewelry company,...Ch. 10 - Sports Butts makes basketballs and footballs in a...Ch. 10 - Seda Sarkisian makes wedding cakes from her home....Ch. 10 - You are a management accountant for Time Treasures...Ch. 10 - Brindis Babysitting Center currently rents a 1200...Ch. 10 - Akimotos Bicycle Co assembles three types of...
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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
- Balcom Dairy gathered this data about the two products that it produces: Which of the products should be processed further?arrow_forwardDorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $310,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 12.00 per pound $ 6.00 per pound $18.00 per gallon Product A B C Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs $ 52,470 $ 74,345 $ 27,460 Quarterly Output 11,400 pounds 17,900 pounds 2,600 gallons Required 1 Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on…arrow_forwardSuppose that a firm produces two products. How should the farm select a product for placing the most emphasis for production and selling?arrow_forward
- Define value chain and classification of costs for “Utility costs for the plant assembling the Latitude computer line of products.”arrow_forwardWhich of the following statements about the value chain is correct?a. The two phases of the activities of the value chain are the upstream activities and the downstreamactivities.b. A company need not operate in all activities of the value chain.c. There are usually six to eight activities in the value chain.d. The value chain is intended for manufacturers.arrow_forwardWhat is SWOT analysis for Smith field Foods Incarrow_forward
- What is of key importance for a company whose products can be processed further?arrow_forwardA chemical company has a commodity-grade and premium-grade product. Why might the company elect to process the commodity-grade product further to the premium-grade product?arrow_forwardStore Corporation is in the process of scheduling the appropriate machinery to switch their production to a new product line, this is an example of a(n):arrow_forward
- The following information pertains to three different product being sold by Esther Company: Which product or products have an inelastic demand curve? a. Product A b. Product B c. Product C d. Both Product A and Product Carrow_forwardIf JIT manufacturing is used and each manufacturing cell produces a single product, which of the following is considered a direct product cost? Inspection costs Materials Setup costs All of thesearrow_forwardPlease choose a company which produces more than one product. Take at least two of these products and discuss the different costs between these two products which may make one more profitable than the other.arrow_forward
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