SEC INSTRUCT 1A 3 QUESTIONS 17 & 18 - A material used by Hershel Green Company in producing Farm Division products are currently purchased from an outside supplier, Sgt. Abraham, at a cost of $10 per unit. However, the same materials are available from the Barn Division Farm Division at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in the Barn's 17. How much would Hershel Green's total income from operations increase? b. $100,000 current sales. As a. $37.500 c. $82,500 d. $150,000 AS 18. How much would the Barn Division's total income from operations increase? A a. $0 c. $75,00 b. $25,000 d. $50,000 B Questions 19 to 20 - Walkers Corpsoration manufactures products four products through a joint process. Additional information is as follows: of Processed Further. Product Units Produced Value at Split-off Additional Costs Sales Value Negan 6,000 $ 80,000 $ 7,500 $ 92,000 Gregory 5,000 60,000 6,000 64,000 Simon 4,000 40,000 6,000 48,000 Dwight 3.000 20.000 3500 23.000 Total 18,000 $200,000 $23,000 $227.000 ta FO 19. The company allocates total joint costs of $160,000 using the relative sales value at split-off approach. What were the joint costs allocated to product Negan? a. $36,000 b. $64,000 c. $48,000 d. $160,000 13 BH 15 20. Which products should be processed further? a. Negan & Gregory b. Negan & Simon C. Gregory & Simon d. Gregory & Dwight END MANAGERIAL ACCOUNTING