Question 4. (10 Marks) Book problem 16-22 shrimp flavored ramen. The two products share common in results in a waste of product referred to as stock which Fancy Foods dumps at a small cost to a local drainage area. In June 2017 the following data were reported for the production and sales of bee shrimp chicken flavored ramen: Fancy foods produces two types of microwaveable products: beef flavored ramen and puts, noodles and spices. The production of ramen f flavored ramen and Joint costs $400,000 Joint costs of noodles, spices and other inputs and processing at split-off poirt Beef Ramen Ramen Shrimp Production Sales Selling price per ton 20,000 tons 20,000 tons $5 28,000 tons 28,000 tons S 20 Based on the popularity of the microwavable products Fancy decides to add a new ine of products that targets dieters. These new products are produced by adding a new ingredient to dilute the original ramen and are to be sold under the name of Special B and special S respectively. Following are the monthly data for all products. Joint costs Special B Special S $400,000 Joint costs of noodles, spices and other inputs and processing at split-off point Separable costs for producing 20,000 of Beef ramen and 25,000 tons of Special B Separable costs for producing 28,000 of Shrimp ramen and 34,000 tons of Special $100.000 $238,000 Beef Shrimp Special B Special S Ramen Beginning inventory in tons 20,000 28,000 25,000 34,000 34,000 Production Sales Selling price per ton 20,00028,000 $20 25,000 17 Required: Calcutate Fancy's Joint costs using the Sales Value at spinoff method (5 Marks) and the physical measure method (5 Marks). 2000 Question 4. (10 Marks) Book problem 16-22 shrimp flavored ramen. The two products share common in results in a waste of product referred to as stock which Fancy Foods dumps at a small cost to a local drainage area. In June 2017 the following data were reported for the production and sales of bee shrimp chicken flavored ramen: Fancy foods produces two types of microwaveable products: beef flavored ramen and puts, noodles and spices. The production of ramen f flavored ramen and Joint costs $400,000 Joint costs of noodles, spices and other inputs and processing at split-off poirt Beef Ramen Ramen Shrimp Production Sales Selling price per ton 20,000 tons 20,000 tons $5 28,000 tons 28,000 tons S 20 Based on the popularity of the microwavable products Fancy decides to add a new ine of products that targets dieters. These new products are produced by adding a new ingredient to dilute the original ramen and are to be sold under the name of Special B and special S respectively. Following are the monthly data for all products. Joint costs Special B Special S $400,000 Joint costs of noodles, spices and other inputs and processing at split-off point Separable costs for producing 20,000 of Beef ramen and 25,000 tons of Special B Separable costs for producing 28,000 of Shrimp ramen and 34,000 tons of Special $100.000 $238,000 Beef Shrimp Special B Special S Ramen Beginning inventory in tons 20,000 28,000 25,000 34,000 34,000 Production Sales Selling price per ton 20,00028,000 $20 25,000 17 Required: Calcutate Fancy's Joint costs using the Sales Value at spinoff method (5 Marks) and the physical measure method (5 Marks). 2000
