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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $196,900. These costs are allocated to
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $196,900. 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. Number of Units Produced Selling Price at Split-Off Selling Price after Processing Additional Processing Costs Product D 4,750 $10.20 $14.80 $15,850 E 5,560 11.50 15.70 15,520 F 1,980 19.70 22.20 7,770 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 Product F Incremental profit (loss) $ 6000 $ 7,830 2,820 (b2) Which product(s) should be processed further and which should be sold at the split-off point? Product D process further Product E process further Product F sold at the split-off point
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