answer 7,8,9,10,11

nished products Y and Z remain constant, the percentage of costs allocated to product Y and product Z would (a) Decrease for product Y and product Z. (c) Increase for product Y and product t costs when a single (b) Decrease for product Y and increase for product Z. (d) Increase for product Y and decrease for product Z. Use the following information for questions 7 through 9. Earl Corporation manufactures a product that gives rise to a byproduct called Zafa. The only costs associated with Zafa are selling costs of $1 for each unit sold. Earl accounts for Zafa sales first by deducting its separable costs from such sales, and then by deducting this net amount from cost of goods sold of the major product. This year, 1,000 units of Zafa were sold at $4 each. 7. If Earl changes its method of accounting for Zafa sales by showing the net amount as additional sales revenue, Earl's gross margin would (a) Be unaffected (b) Increase by $3,000 (C) Decrease by $3,000 (d) Increase by $4,000 8. If Earl changes its method of accounting for Zafa sales by showing the net amount as "Other Income." Earl's gross margin would cover its cost of o the joint products' (a) Be unaffected (b) Increase by $3,000 (c) Decrease by $3,000 (d) Decrease by $4,000 9. If Earl changes its method of accounting for Zafa sales by showing the net amount as "Other Income," Earl's net income would nt costs should be jantitative basis. (a) Be unaffected (b) Increase by $3,000 (c) Decrease by $3,000 (d) Decrease by $4,000 10. Lowe Co. manufactures products A and B from a joint process. Sales value at splitoff was $700,000 for 10,000 units of A, and $300,000 for 15,000 units of B. Using the sales value at splitoff approach, joint costs properly allocated to A were $140,000. Total joint costs were for each n 2003 plitoff S (a) $98,000 (b) $200,000 (C) $233,333 (d) $350,000 11. A company processes raw material into products F1, F2, and F3. Each ton of raw material produces five units of F1, two units of F2, and three units of F3. Joint processing costs to the splitoff point are $15/ton. Further processing results in the following per-unit figures: 15 11 F1 F2 F3 Additional processing costs per unit $28 $30 $25 Selling price per unit 30 35 35