Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BioMorphs Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing $30,600 are heated

image text in transcribedimage text in transcribedimage text in transcribed

BioMorphs Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing $30,600 are heated and three different compounds emerge: 3,000 gallons of Molecue worth $22 per gallon are created from the steam; 10,000 gallons of Borphue worth $15 are drained from the tank; and 1,000 gallons of the tank residue, labeled as Polygard, are sold as fertilizer for $7.00 per gallon. Before Molecue is sold, it must be purified in another process that costs $10,900, and before the Polygard fertilizer is sold, it must be bottled at a price of $1.50 per gallon. a. What is the profitability of the joint process? b. Is it profitable to process Molecue further if it can be sold at split-off for $5 per gallon? c. BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,100 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer? Complete this question by entering your answers in the tabs below. Required a Required B Required C What is the profitability of the joint process? Total profit Required A Required B > Required A Required B Required C Is it profitable to process Molecue further if it can be sold at split-off for $5 per gallon? Is it profitable to process further? Required A Required B Required C BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,100 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer? Incremental loss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson

3rd Edition

1861529465, 9781861529466

More Books

Students also viewed these Accounting questions

Question

1. Outline the directions on the board.

Answered: 1 week ago