Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds

Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound. LTE can be sold at split-off for $55 per pound. HS can be sold at split-off for $10 per pound. A buyer of HS asked Bozo to process HS further into CS compound. If HS were processed further, it would cost $45,900 to turn 14,000 pounds of HS into 4,000 pounds of CS. The CS would sell for $47 per pound.
Required:
1. What is the contribution to income from selling the 14,000 pounds of HS at split-off?
$fill in the blank 1
140,000
2. CONCEPTUAL CONNECTION: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS?
$fill in the blank 2
image text in transcribed
ebook Print Hom Thers and protect the this continues to occur, please contact Technical Support Boro Inc. manufactures two products from a joint production process. The Joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14.000 pounds of HS compound, LTE can be sold at split off for 555 per pound, HS can be sold at split-off for sta per pound. A buyer of 5 asked Beza to process is further intas compound, If Hs were processed further, it would cost $45,900 totum 14,000 pounds of 5 inta 4,000 pounds of cs. The Cs would sell for $47 per pound. Required: 1. What is the contribution to income from selling the 14,000 pounds of HS at spit of $140,000 2. CONCEPTUAL CONNECTION: What is the contribution to income from processing the 14,000 pounds of 5 into 4,000 pounds of CS? Should Boxo continue to sell the sot solitoff or process it further into CS? Process it further into s My Wor 1. Calculate revenue of HS when sold at split-off for $11 2. Calculate revenue to process further. Multiply soles price by pounds of Cs. Subtract processing cost from revenue for contribution arou. Previous Check My Work Save and it Submit Assignment for Grading All works ved MacBook Pro

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

Step: 3

blur-text-image

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

Accounting The Ultimate Guide To Accounting For Beginners

Authors: Greg Shields

1st Edition

1546332820, 978-1546332824

More Books

Students also viewed these Accounting questions