bell or Process Further, Basic Analysis Carleigh, Inc., is a pork processor. Its plants, located in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
bell or Process Further, Basic Analysis Carleigh, Inc., is a pork processor. Its plants, located in the Midwest, produce several products from a common process: sirloin roasts, chops, spare ribs, and the residual. The roasts, chops, and spare ribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: Direct materials Direct labor Overhead $89,000 25,000 20,500 The revenues from each product are as follows: sirloin roasts, $70,500; chops, $79,500; spare ribs, $32,000; and residual, $8,000. Carleigh's management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for $52,200. This would bring the value of the rewdual down to $2,150. In addition, the organ meats would need to be packaged and then air freighted to Asis. Further processing cost per week is estimated to be $25,900 (the cost of renting additional packaging equipment, purchasing matenals, and hiring additional drect labor). Transportation cost would be $10,900 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, receiving, and internal shipping). The increase in resource spending for these activities is estimated to be $2,900 per week Required: 1. What is the gross profit earned by the original mox of products for one week? 2. Should the company separate the organ meats for shipment overseas or continue to sell them at sple-off? What is the effect of the decision on weekly gross profit? Check My Work by s Previous Next bell or Process Further, Basic Analysis Carleigh, Inc., is a pork processor. Its plants, located in the Midwest, produce several products from a common process: sirloin roasts, chops, spare ribs, and the residual. The roasts, chops, and spare ribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: Direct materials Direct labor Overhead $89,000 25,000 20,500 The revenues from each product are as follows: sirloin roasts, $70,500; chops, $79,500; spare ribs, $32,000; and residual, $8,000. Carleigh's management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for $52,200. This would bring the value of the rewdual down to $2,150. In addition, the organ meats would need to be packaged and then air freighted to Asis. Further processing cost per week is estimated to be $25,900 (the cost of renting additional packaging equipment, purchasing matenals, and hiring additional drect labor). Transportation cost would be $10,900 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, receiving, and internal shipping). The increase in resource spending for these activities is estimated to be $2,900 per week Required: 1. What is the gross profit earned by the original mox of products for one week? 2. Should the company separate the organ meats for shipment overseas or continue to sell them at sple-off? What is the effect of the decision on weekly gross profit? Check My Work by s Previous Next
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Sherman Co. began operations on January 1, 2015, and completed several transactions during 2015 and 2016 that involved sales on credit, accounts receivable collections, and bad debts. These...
-
What are the main principles of source document design?
-
Distinguish among service industries, distribution industries, and production industries.
-
A cost sheet and partial finished goods ledger card for Leather Originals, a manufacturer of leather furniture, are provided in the Working Papers. Work independently to complete the following...
-
Jan Martinelli, a junior in college, has been seeking ways to earn extra spending money. As an active sports enthusiast. Jan plays tennis regularly at the Naples Tennis Club, where her family has a...
-
Discuss the pro's and cons's of sole, single, and multiple sourcing and the various risks associated with each of these buying strategies. Keep in mind that in purchasing we have two friends -...
-
The general economic conditions appear to be deteriorating heading into 20X7, and there is some concern about a reduction in sales volume. The following questions should each be answered independent...
-
What are the principles of a database management system? Define a database management system (DBMS), describe how it works, and explain how it benefit organizations. Define and compare the logical...
-
What are the most important contemporary hardware and software trends? Define and describe the mobile digital platform, nanotechnology, grid computing, cloud computing, autonomic computing,...
-
The P-value represents the probability that H0 is true. In Exercises 2934, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
-
If the P-value is very small, we can be sure that the results have practical significance. In Exercises 2934, determine whether the statement is true or false. If the statement is false, rewrite it...
-
How do information systems help people working in a group make decisions more efficiently? Define a group decision support system (GDSS), and explain how it works and how it supports organizational...
-
Healthy Weight Region for Men and Wmen, Ages 35 and Older The figure shows the healthy weight region for various heights for people ages 35 and older. If x represents height, in inches, and y...
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
Which document is used to establish a contract for the purchase of goods or services from a supplier? a. vendor invoice c. purchase order b. purchase requisition d. disbursement voucher
-
Are there any limits to how little inventory a company should carry? Is it possible to entirely eliminate all inventories?
-
How can innovative uses of IT to perform expenditure cycle activities also be used to improve the efficiency and effectiveness of suppliers revenue cycle activities? Why might a company wish to help...
Study smarter with the SolutionInn App