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please help. thank you so much In a joint process The Umber Company produces four chemicals Alpha456, Beta657,Gamma234, Delta900. Each product may be sold at
please help. thank you so much
In a joint process The Umber Company produces four chemicals Alpha456, Beta657,Gamma234, Delta900. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of the joint products are $145,600. Other relevant data are as follows: | ||||
Product | Liters Produced | TotalSales Value | Additional | TotalSales Value of |
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 Umber 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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