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A manufacturing company makes two products. Up to the split-off point of Products F and Gjoint process costs are $46,400 a year Joint costs are
A manufacturing company makes two products. Up to the split-off point of Products F and Gjoint process costs are $46,400 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 volue after further processing Product $ 18,200 $ 25,550 $ 22,700 $ 47,600 Product G $ 28,200 $ 37,300 $ 17,000 $ 55,300 Total $ 46,400 $ 62,850 $ 39,700 $102,900 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 Financial disadvantage Financial advantage
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