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Oates Tannery manufactures three main products from a Joint processing costs up to the split-off point are as follo Direct materials Direct labour Supervisor's salary
Oates Tannery manufactures three main products from a Joint processing costs up to the split-off point are as follo Direct materials Direct labour Supervisor's salary Security Custodian salaries Utilities 150 180 150 5 4 3 The company allocates these costs to the joint products point. Each of the products may be sold at the split-off p processing costs and sales value after further processing Product Y Z Sales Value at Split-off $300,000 $200,000 $100,000 Further Processing Costs $ 150,000 $ 190,000 $ 170,000 The "Further Processing Costs" consist of variable and nufactures three main products from a common Input in a joint proc ests up to the split-off point are as follows: 150,000 180.000 150,000 50,000 40,000 30,000 ates these costs to the joint products on-the-basis of their total sa roducts may be sold at the split-off point or processed further. T d sales value after further processing for each product, on an anr Sales Value t Split-off $300,000 200,000 $100,000 Further Processing Costs $ 150,000 $ 190,000 $ 170,000 Sales Value After Further Processing $460,000 $360,000 $320,000 sing Costs" consist of variable and avoidable fixed costs. lieb from a common Input in a joint processing operation. as follows: 150,000 180,000 150,000 50,000 40,000 30,000 oducts on-the-basis of their total sales at the split-off it-off point or processed further. The additional cessing for each product, on an annual basis, are: ing Sales Value After Further Processing $460,000 $360,000 $320,000 000 00 000 le and avoidable fixed costs. ich product or products Y $200,000 $100.000 S 150 $ 190. $ 170 N The "Further Processing Costs" consist of varial Required: a) Which product or products should be sold should be processed further? Show comput b) F18 is a minor by-product of the above pro sold after minor further processing. The fo Sales Variable costs Traceable fixed costs Common fixed costs Operating loss $12,000 2,000 6,000 10,000 ($6,000). What would happen to GH Ltd.'s operating income than processed further? Should GH Ltd. process FL 200,000 100.000 $ 150.000 $ 190.000 $ 170,000 $460.000 $360,000 $320,000 sing Costs" consist of variable and avoidable fixed costs. or products should be sold at the spilt-off point, and which pr ssed further? Show computations. Is -y-product of the above process and is not included in the ab further processing. The following information has been pro costs osts $12,000 2,000 6,000 10,000 ($6,000). I Ltd.'s operating income if F18 was scrapped at no cost could GH Ltd. process F18 further? I 190.000 170,000 $360,000 $320,000 ariable and avoidable fixed costs. old at the spilt-off point, and which product or products nputations. process and is not included in the above calculations. It is e following information has been provided: ome if F18 was scrapped at no cost at the split-off point rather s F18 further
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