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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

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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 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 19,000 62,000 69,000 48,000 0 42,000 $ 45,600 $310,000 $362,250 Departments Raw material coat Direct labor cost Manufacturing overhead $164,000 73,000 28,000 $ 0 93,000 31,300 $ 285,000 106,500 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 $5.50 per pound and then sold for $12.80 per pound. Compute the incremental income from further processing A c. Considering the results of part b, should the company process product A further? 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 Values Joint Costs Cost of Goods Sold Ending Inventory Product A Product B Product Total $ Required 8 > Required A Required B Required C Assume that the entire output of product A could be processed further at an additional cost of $5.50 per pound and then sold for $12.80 per pound. Compute the incremental income from further processing A Incremental income Required A Required c >

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