E $200,000 $40,000 $120,000 $150,000 $60,000 $50,000 $60,000 $10,000 $160,000 $240,000 $90,000 1 Chapter 11: Applying Excel 2. 3 Data 4 Exhibit 11-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point: 8 Undyed coarse wool 9 Undyed fine wool 10 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool 13 Undyed fine wool 14 Undyed superfine wool 15 Sales value of end products: 16 Dyed coarse wool 17 Dyed fine wool 18 Dyed superfine wool 19 20 Enter a formula into each of the cells marked with a ? below 21 Example: Joint Product Costs and the Contribution Approach 22 23 Analysis of the profitability of the overall operation: 24 Combined final sales value 25 Less costs of producing the end products: 26 Cost of wool 27 Cost of separation process 28 Combined costs of dyeing 29 Profit 30 31 Analysis of sell or process further: 32 33 34 Final sales value after further processing 35 Less sales value at the split-off point 36 Incremental revenue from further processing 37 Less cost of further processing (dyeing) 38 Financial advantage (disadvantage) of further processing 39 40 ? ? ? ? ? ? Fine Wool Coarse Wool ? ? ? ? ? ? ? ? ? ? Superfino Wool ? ? ? ? 2 Required information Chapter 11: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo) Step 1: Download the Applying Excel form located on the left-hand side, under files. If you have trouble, the file is also located in D2L under Course Files and Resources. Step 2: Verify that your worksheet matches the Review Problem in the text. Then enter formulas in all cells that contain question marks. For example, in cell C26 enter the formula 85 Step 3: Check your worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall financial advantage (disadvantage) from processing all intermediate products into final products should now be $150,000 and the financial advantage (disadvantage) from further processing undyed coarse wool should now be $10,000. If you do not get these answers, find the errors in your worksheet, and correct them Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions, 2. In Industries that process joint products, the costs of the raw materials inputs and the soles values of Intermediate and final products are often volatile. Change the data area of your worksheet to match the following: 8 $ 193,000 40,000 $ $ 1 Chapter 11: Applying Excel 2 3 Data 4 Exhibit 11-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point 8 Undyed course wool 9 Undyed fine wool 10 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool 43 Undyed fine wool 14 Undyed superfine wool 1s Sales value of end products 16 Dyed course wool 17 Dyed fine wool $ $ 136,000 177,000 74,000 $ $ 50,000 60,000 10,000 $ $ 166,000 $ 219,000 0.6 onts $ $ $ 136,000 177.000 74,000 eBook 8 Undyed coarse wool 9 Undyed fine wool 10 Undyod superfino wool 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool 13 Undyed fine wool 14 Undyed superfine wool 15 Sales value of end products: 16 Dyed course wool 17 Dyed fine wool 19 Dyed superfine wool $ $ $ 50,000 60,000 10,000 Files $ $ $ 166,000 219,000 94,000 Print References your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? Overal profit from processing intermediate producto b. What is the financial advantage (disadvantage) from further processing? from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool c.1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? Sell as is or process further the intermediate product undyed coarse wool? Sell as is or process further the intermediate product undyed fine wool? Sell as is or process further the intermediate product undyed superfine wool? c-2. If your recommendation in part (-1) is followed, what would be the company's overall profit? Overall profit from following the plan in part (o)
