Question
Hello, Looking to compare. Thanks, Baldwin Corporation produces three separate products from a common process with a joint cost of $120,000. Each of the products
Hello,
Looking to compare.
Thanks,
Baldwin Corporation produces three separate products from a common process with a joint cost of $120,000. Each of the products can be sold at the split-off point or can be processed further and then sold at a higher price. The cost and selling data for a recent period follow: Product | Sales Value at Split-off point | Separable Costs of further processing | Sales Value after further processing |
Product Alpha | $55,000 | $100,000 | $190,000 |
Product Beta | $20,000 | $ 50,000 | $ 40,000 |
Product Sigma
1) Use the Net Realizable Method to allocate the joint costs to each of the three products? 2) Use incremental analysis to determine which products should be sold at the spilt-off point and which should be processed further. State Specifically which products should be sold at spilt-off and which should be further processed before being sold? | $60,000 | $150,000 | $220,000
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