Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 of 5 < -/15 1 Blossom industrial Products Inc. is a diversified Industrial-cleaner processing company. The company's Dargan plant produces two products:

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Question 3 of 5 < -/15 1 Blossom industrial Products Inc. is a diversified Industrial-cleaner processing company. The company's Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 855,000 ounces of chemical input are processed at a cost of $207,000 into $70,000 ounces of floor cleaner and 285,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $240,000 FloorShine sells at $18 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 285,000 ounces of another compound (TCP) to the 285,000 ounces of table cleaner. This joint process will yield 285.000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this process amount to $100,000. Both table products can be sold for $14 per 25-ounce bottle. The company decided not to process the table cleaner into TSR and TP based on the following analysis Process Further Table Cleaner Production in ounces 285,000 Table Stain Remover (TSR) 285,000 Table Polish (TP) Total 285,000 Revenues $193,800 $159,600 $159,600 $319.200 Costs 23 tv Aa

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

16th edition

1118742974, 978-1118743201, 1118743202, 978-1118742976

More Books

Students also viewed these Accounting questions

Question

How comparable are the groups in causal comparative studies?

Answered: 1 week ago

Question

What is an insurable interest? Why is it important?

Answered: 1 week ago