Question
Accounting Help A company manufactures three products using the same production process. The costs incurred up to the split-off point are $ 208,400. These costs
Accounting Help
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $ 208,400. 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 | 4,350 | $ 10.10 | $ 15.37 | $ 16,865 | ||||||||||
E | 5,530 | 11.10 | 16.42 | 21,620 | ||||||||||
F | 1,900 | 19.21 | 23.02 | 10,809 |
(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 | 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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