Question
HI, THIS IS CREATED BY MISTAKES. YOU DON'T NEED TO SOLVE THIS. THANK YOU! Below you will find information from Tesla, Inc. management and the
HI, THIS IS CREATED BY MISTAKES. YOU DON'T NEED TO SOLVE THIS. THANK YOU!
Below you will find information from Tesla, Inc. management and the work the accountant has done. Please answer the following questions for each of the two situations:
1. Is the accountants calculations and recommendations to management, correct? 2. If not, what should the calculations and recommendations be?
Management wants to know which products, if any, should be processed beyond the split-off point? The accountant made the following calculations:
| Product D | Product E | Product F | |
| Sales value after further processing | $100,000 | $115,000 | $55,000 |
| Added processing costs | 20,000 | 36,000 | 10,000 |
| Financial advantage (disadvantage) from further processing | $80,000 | $79,000 | $45,000 |
The accountant recommends that all products should be processed beyond the split-off point.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
