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Edmonton Manufacturing Company (EMC) produces three types of flour (AllPurpose, GlutenFree and Baking) by processing wheat. Wheat is added to the processing machine first and
Edmonton Manufacturing Company (EMC) produces three types of flour (AllPurpose, GlutenFree and Baking) by processing wheat. Wheat is added to the processing machine first and the outputs (AllPurpose, GlutenFree and Baking) are produced at the split-off point. The company can sell these outputs produced at split-off point. However, because customers are always looking for better products, each of the outputs then go through separate processing for upgrading the quality of the products. The sales price at split-off, additional processing cost, and sales price of the final products after upgrade is given in the table below for Jan 2022. The initial processing cost of wheat is concered as joint cost. Do not round any intermediate calculation. AllPurpose GlutenFree Baking production quantity (kg) 18,000 15,000 13,500 price/kg at split-off $1.25 $2.00 $2.30 inal price/kg after $1.89 $2.34 $2.98 upgrading separate processing $8,350.00 $2,754.00 $8,265.00 (upgrading) cost oint Cost $24,700.00
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