Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Company has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is

Sheridan Company has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $36000, which has been allocated based on the gallons of milk base used by each product. Results for July follow:

Sour Cream Ice Cream Yogurt Butter Total
Units sold 2000 500 400 2000 4900
Revenue $8330 $16660 $8330 $16660 $49980
Variable departmental costs 3990 8740 2850 3230 18810
Fixed costs 5000 2000 3000 7000 17000
Net income (loss)

$ (660)

$ 5920

$ 2480

$ 6430

$14170

How much are total joint costs of the products?

a)$14170

b)$35810

c)$18810

d) $17000

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_2

Step: 3

blur-text-image_3

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

Value Based Management Context And Application

Authors: Glen Arnold, Matt Davies

1st Edition

0471899860, 978-0471899860

More Books

Students also viewed these Accounting questions

Question

Explain the importance of HRM to all employees.

Answered: 1 week ago

Question

Discuss the relationship between a manager and an HR professional.

Answered: 1 week ago

Question

Outline demographic considerations.

Answered: 1 week ago