Question
LANG Company manufactures products Katran and Klare from a joint process. Product Katran has been allocated $200,000 of total joint costs of $600,000 for the
LANG Company manufactures products Katran and Klare from a joint process. Product Katran has been allocated $200,000 of total joint costs of $600,000 for the 5,000 units produced. Katran can be sold at the splitoff point for $100 per unit, or it can be processed further with additional costs of $200,000 and sold for $325 per unit. Required: Calculate the incremental loss or profit of processing Katran further.
| A. | $325,000 | |
| B. | $1,125,000 | |
| C. | $125,000 | |
| D. | $925,000 | |
| E. | some other amount | |
| F. | $625,000 | |
| G. | $400,000 | |
| H. | $800,000 |
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DOD Financial Management The Army Faces Significant Challenges In Achieving Audit Readiness For Its Military Pay
Authors: Government Accountability Office
1st Edition
1492310921, 978-1492310921
