Exercise 20-10 (Part Level Submission)

Stahl Inc. produces three separate products from a common process costing $100,900. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.

Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $59,800 $100,900 $190,300 Product 12 15,300 29,000 34,800 Product 14 56,000 149,900 215,200

[Collapse question part]

(a)

Determine total net income if all products are sold at the split-off point.

Net income

(b) determine total net income if all products are sold after further processing

(c) calculate incremental profit/loss and determine which products should be sold at the split off point and which should be proccessed further.

(d) determine total net income using the results from previous part

(e)is the net income different from that determined in part b?