Question
KENTUCKY Corporation makes two products, X and Y, from a joint input that have the following information: Sales Value Total Sales Value Units per unit
KENTUCKY Corporation makes two products, X and Y, from a joint input that have the following information:
|
|
| Sales Value | Total | Sales Value |
|
| Units | per unit at | Additional | per unit after |
|
| Produced | split-off point | Processing Costs | additional processing |
| Product X | 50,000 | $10 | $400,000 | $15 |
| Product Y | 30,000 | $8 | $300,000 | $20 |
The joint cost incurred to produce the two products up to the current point is $600,000.
Required:
Which cost is sunk in this situation? Why?
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Security Audit And Control Features SAP ERP
Authors: Isaca
4th Edition
1604205806, 978-1604205800
