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Edmonton Chemical Company manufactures two Industrial chemical products in a joint process. In May. 20.000 gallons of Input costing $65.000 were processed at a cost
Edmonton Chemical Company manufactures two Industrial chemical products in a joint process. In May. 20.000 gallons of Input costing $65.000 were processed at a cost of $160,000. The Joint process resulted in 15,000 pounds of Resoline and 5,000 pounds of Krypto. Resoline sells for $20 per pound, and Krypto sells for $40 per pound. Management generally processes each of these chemicals further in separable processes to produce more refined chemical products. Resoline is processed separately at a cost of $6 per pound. The resulting product, Resolite, sells for $32 per pound. Krypto Is processed separately at a cost of $10 per pound. The resulting product, Kryptite, sells for $62 per pound. Required: 2-a. Allocate the company's Joint production costs for May using the physical-units method. (Do not round your Intermediate calculations.) Allocation of Joint Cost Joint Products Resoline Krypto Total $ 0 2-b. Allocate the company's Joint production costs for May using the relative-sales-value method. (Do not round your Intermediate calculations.) Allocation of Joint Cost Joint Products Resoline Krypto Total $ 0 2-c. Allocate the company's Joint production costs for May using the net-realizable-value method. (Do not round your Intermediate calculations.) Allocation of Joint Cost Joint Products Resoline Krypto Total $ 0 3-a. Edmonton's management is considering an opportunity to process kryptite further into a new product called Omega. The separable processing will cost $37 per pound. Packaging costs for Omega are projected to be $7 per pound, and the anticipated sales price is $85 per pound. Calculate the Incremental profit or loss from processing Kryptite Into Omega. Incremental per pound
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