Question
Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows: L M N Total
Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:
| L | M | N | Total | |||||||||
| Units produced | 60,200 | 46,000 | 11,800 | 118,000 | ||||||||
| Joint costs | ? | ? | ? | $ | 456,000 | |||||||
| Sales value at split-off | $ | 426,000 | $ | 276,000 | $ | 66,000 | $ | 768,000 | ||||
| Additional costs if process further | $ | 94,000 | $ | 36,000 | $ | 18,000 | $ | 148,000 | ||||
| Sale value if processed further | $ | 544,000 | $ | 326,000 | $ | 84,000 | $ | 954,000 | ||||
Assuming that the 11,800 units of N were processed further and sold for $84,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.
Multiple Choice
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$20,400.
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$34,163.
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$36,000.
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$75,183.
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Health And Safety Environment And Quality Audits
Authors: Stephen Asbury
3rd Edition
0815375395, 978-0815375395
