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PLEASE INCLUDE FORMULAS Check your worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall financial advantage
PLEASE INCLUDE FORMULAS
Check your worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall financial advantage (disadvantage) from processing all intermediate products into final products should now be $150,000 and the financial advantage (disadvantage) from further processing undyed coarse wool should now be $10,000. If you do not get these answers, find the errors in your worksheet and correct them.
Chapter 12: Applying Excel | |||
Data | |||
Exhibit 12-7 Santa Maria Wool Cooperative | |||
Cost of wool | $200,000 | ||
Cost of separation process | $40,000 | ||
Sales value of intermediate products at split-off point: | |||
Undyed coarse wool | $120,000 | ||
Undyed fine wool | $150,000 | ||
Undyed superfine wool | $60,000 | ||
Costs of further processing (dyeing) intermediate products: | |||
Undyed coarse wool | $50,000 | ||
Undyed fine wool | $60,000 | ||
Undyed superfine wool | $10,000 | ||
Sales value of end products: | |||
Dyed coarse wool | $160,000 | ||
Dyed fine wool | $240,000 | ||
Dyed superfine wool | $90,000 | ||
Enter a formula into each of the cells marked with a ? below | |||
Example: Joint Product Costs and the Contribution Approach | |||
Analysis of the profitability of the overall operation: | |||
Combined final sales value | ? | ||
Less costs of producing the end products: | |||
Cost of wool | ? | ||
Cost of separation process | ? | ||
Combined costs of dyeing | ? | ? | |
Profit | ? | ||
Analysis of sell or process further: | |||
Coarse | Fine | Superfine | |
Wool | Wool | Wool | |
Final sales value after further processing | ? | ? | ? |
Less sales value at the split-off point | ? | ? | ? |
Incremental revenue from further processing | ? | ? | ? |
Less cost of further processing (dyeing) | ? | ? | ? |
Financial advantage (disadvantage) of further processing | ? | ? | ? |
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