In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following:.
a. What is the overall profit if all intermediate products are processed into final products?
b. What is the financial advantage (disadvantage) from further processing?
c-1. With these new costs and selling prices, what recommendations would you make concerning the companys operations?
c-2. If your recommendation in part (c-1) is followed, what would be the companys overall profit?
All I WANT TO KNOW IS HOW TO DO C-2!!!
B D E 1 Chapter 13: Applying Excel 2 3 Data 4 Exhibit 13-7 Santa Maria Wool Cooperative 5 Cost of wool $151,000 6 Cost of separation process $40,000 7 Sales value of intermediate products at split-off point: 8 Undyed coarse wool $116,000 9 Undyed fine wool $162,000 10 Undyed superfine wool $74,000 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool $50,000 13 Undyed fine wool $60,000 14 Undyed superfine wool $10,000 15 Sales value of end products: 16 Dyed coarse wool $165,000 17 Dyed fine wool $216,000 18 Dyed superfine wool $91,000 19 20 Enter a formula into each of the cells marked with a ? below 21 Example: Joint Product Costs and the Contribution Approach 22 23 Analysis of the profitability of the overall operation: 24 Combined final sales value 25 Less costs of producing the end products: 26 Cost of wool $ 151,000 27 Cost of separation process $40,000 28 Combined costs of dyeing $120,000 29 Profit 30 31 Analysis of sell or process further: 32 Coarse 33 Wool 34 Final sales value after further processing $165,000 35 Less sales value at the split-off point $116,000 36 Incremental revenue from further processing $49,000 37 Less cost of further processing (dyeing) $50,000 38 Financial advantage (disadvantage) of further processing -$1,000 39 $ 472,000 311,000 $ 161,000 Fine Wool $216,000 $162,000 $54,000 $60,000 -$6,000 Superfine Wool $91,000 $74,000 $17,000 $10,000 $7,000 Required information Chapter 13: Applying Excel (Algo) (LO13-7) The Chapter 13 Form worksheet is to be used to create your own worksheet version of the main example in the text. Chapter 13: Applying Excel: Exercise (Part 2 of 2) (Algo) 2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: B $ 151,000 $ 40,000 A 1 Chapter 13: Applying Excel 2 3 Data Exhibit 13-7 Santa Maria Wool Cooperative 4 Cost of wool 5 Cost of separation process 6 Sales value of intermediate products at split- 7 off point: Undyed coarse wool 8 Undyed fine wool 9 Undyed superfine wool 10 costs of further processing (dyeing) 11 intermediate products: Undyed coarse wool 12 Undyed fine wool Undyed superfine wool 13 Sales value of end products 14 Dyed coarse wool 15 Dyed fine wool 16 Dyed superfine wool 17 | 18 $ 116,000 $ 162,000 $ 74,000 $ 50,000 $ 60,000 $ 10,000 $ 165,000 $ 216,000 $ 91,000 If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? Overall profit from processing all intermediate products $ 161,000 b. What is the financial advantage (disadvantage) from further processing? $ (1,000) Financial (disadvantage) Financial (disadvantage) Financial advantage from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool $ 6,000) $ 7,000 C-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? Sell as is Sell as is or process further the intermediate product undyed coarse wool? Sell as is or process further the intermediate product undyed fine wool? Sell as is or process further the intermediate product undyed superfine wool? Sell as is Process further C-2. If your recommendation in part (C-1) is followed, what would be the company's overall profit? Overall profit from following the plan in part (c)
