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A manufacturing company makes two products. Up to the split-off point of Products F and G. joint process costs are $51,200 a year. Joint
A manufacturing company makes two products. Up to the split-off point of Products F and G. joint process costs are $51,200 a year. Joint costs are allocated to the products based on their total sales values at the split-off point. Both products may be sold at the split-off point or processed further. Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product F $ 19,900 Product G $ 31,300 Total $ 51,200 $ 24,350 $ 38,350 $ 24,400 $ 18,700 $ 48,200 $ 58,700 $ 62,700 $43,100 $106,900 Required: a. Calculate the financial advantage (disadvantage) of processing Product F beyond the split-off point. (Negative amount should be indicated by a minus sign.) b. Calculate the financial advantage (disadvantage) of processing Product G beyond the split-off point. (Negative amount should be indicated by a minus sign.) a b L
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