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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $203,500. 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 $203,500. 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 Additional after Processing Processing Costs Product D 4,570 $10.30 $15.30 $16,750 E 5,930 11.30 16.60 23,749 F 1,770 19.80 22.70 8,533 (51) 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) $ $ $ (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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