Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help me assap Problem 20-3A (Part Level Submission) Thompson Industrial Products Inc. (TIPI) is a diversified industrial processing company. The company's Dargan plant produces two
help me assap
Problem 20-3A (Part Level Submission) Thompson Industrial Products Inc. (TIPI) is a diversified industrial processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 882,000 ounces of chemical input are processed at a cost of $209,100 into 588,000 ounces of floor cleaner and 294,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $240,200. Floor Shine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 294,000 ounces of another compound (TCP) to the 294,000 ounces of table cleaner. This joint process will yield 294,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $101,000. Both table products can be sold for $14 per 25-ounce bottle. The company decided not to process the table cleaner into TsR and TP based on the following analysis. Process Further Table Stain Table Table Remover Cleaner (TSR) Polish (TP) Total Production in ounces 294,000 294,000 294,000 $164,640 $329,280 $199,920 $164,640 Revenues Costs 52,275 104,550 CDG costs 69,700 52,275 TCP costs 50,500 50,500 101,000 Total costs 69,700 102,775 102,775 205,550 Weekly gross profit $130,220 $61,865 $61,865 $123,730 f table cleaner is not processed further, it is allocated 1/3 of the $209,100 of CDG cost, which is equal to 1/3 of the total physical output. If table cleaner is processed further, total physical output is 1,176,000 ounces. TSR and TP combined account for 50% of the total physical output and are each allocated 25% of the CDG costStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started