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Liters Product TotalSales Value TotalSales Additional Value of Produced At Split-Off Processing Costs Final Product Alpha456 280 $70,000 $12,000 $88,000 Beta657 250 56,000 9,000
Liters Product TotalSales Value TotalSales Additional Value of Produced At Split-Off Processing Costs Final Product Alpha456 280 $70,000 $12,000 $88,000 Beta657 250 56,000 9,000 46,000 Gamma234 450 92,400 28,000 110,000 Delta900 220 61,600 13,000 72,000 Total 1,200 $280,000 $66,000 $186,000 REQUIRED 1. Allocate the joint cost to the four primary products using the sales value at split off point method (round to whole dollars). 2. Determine which products should be processed further 3. The Ember Company only processes further the products you have determined to do so in part 2. If all liters of each of the four chemicals are sold what is the gross profit of each product.
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