Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold, Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30. No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing. Products Pounds sold Pounds on hand at June 30 Sales revenues 18,000 55,800 67, 50,000 $42,300 $264,000 $351,750 Departments Raw material cost Direct labor cost Manufacturing overhead $162,000 $ 75,000 95,eee 29,000 31,100 $ 281, eee 101,500 Required: a. Determine the following amounts for each product: [t) estimated net realizable value used for allocating joint costs. (2) joint costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30 b. Assume that the entire output of product Acould be processed further at an additional cost of $5.70 per pound and then sold for $12.40 per pound. Compute the incremental income from further processing A c. Considering the results of part b. should the company process product A further? c. Considering the results of part b, should the company process product A further? Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the following amounts for each product: (1) estimated net realizable value used for allocating joint costs, (2) joint costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Product Estimated Net Realizable Joint Costs Cost of Goods Sold Ending Inventory Values Product A Product Product C Total $ 0S 0S Required B > Required: a. Determine the following amounts for each product: (1) estimated net realizable value used for allocating joint costs, (2) joint cos allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30. ed further at an additional cost of $5.70 per pound and then sold for $12.40 per pound. Compute the incremental income from further processing A c. Considering the results of part b, should the company process product A further? Complete this question by entering your answers in the tabs below. Required A Required Required C * *** * * **** ** Assume that the entire output of product Acould be processed further at an additional cost of $5.70 per pound and then sold for $12.40 per pound. Compute the incremental income from further processing A Incremom income Required: a. Determine the following amounts for each product (1) estimated net realizable value used for allocating joint costs. (2) joint costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30. b. Assume that the entire output of product A could be processed further at an additional cost of $5.70 per pound and then sold for $12.40 per pound. Compute the incremental income from further processing A. c. Considering the results of part b. should the company process product A further? Complete this question by entering your answers in the tabs below. Required A Required B Required Considering the results of part be should the company process product A further? OYes
