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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $196,600. These costs are allocated to
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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $196,600. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, 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 Number of Units Produced Selling Price at Split-Off Selling Price after Processing Additional Processing Costs D 4,160 $10.20 $15.20 $14,770 E 5,640 11.90 15.80 14,276 F 2,330 19.20 22.30 10,753 (b1) Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product D Product E Incremental profit (loss) $ $ Product F $ (b2) Which product(s) should be processed further and which should be sold at the split-off point? Product D Product E Product F
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