Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Origins Ltd. manufactures the joint products, Genesis and Herald. Genesis sells for $11.00 per unit, whereas Herald sells for $24.00 per unit. Total joint processing
Origins Ltd. manufactures the joint products, Genesis and Herald. Genesis sells for $11.00 per unit, whereas Herald sells for $24.00 per unit. Total joint processing costs were $3,877,500. The 2 products require further processing beyond the split-off point. The following information relates to the 2 products : Production (units) Separable costs Genesis 300,000 $280,000 Herald 250,000 $380,000 Required : (a) Determine the total cost per unit of each of the products using the physical method. (Show all workings. You may prepare your workings using WORD or EXCEL) (1 mark) (b) Determine the total cost per unit of each of the products using the net realisable value method. (Show all workings. You may prepare your workings using WORD or EXCEL) (3 marks) (c) Determine the total cost per unit of each of the products using the constant gross margin method. (Show all workings. You may prepare your workings using WORD or EXCEL) (2 marks) (d) Herald could be further processed into Innovate for an additional cost of $12.00 per unit. Innovate would sell for $35.00 per unit. Should the company produce Innovate? Show the necessary computation to justify your decision. (Show all workings. You may prepare your workings using WORD or EXCEL) (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started