Question
Silver Fashion produces two types of garments : DSuits and DGowns . The two products share common inputs such as textile and yarn . The
| Joint Costs | |
Joint Costs of Textile and Yarn | $500,000 | |
| DSuits | DGowns |
Beginning Inventory | 0 | 0 |
Production(in Units) | 4,000 | 5,000 |
Sales (in Units) | 3,800 | 4,000 |
Selling price per unit | $1,200 | $3,000 |
Due to the popularity of its products, Silver Fashion decides to add a new line of products that targets modern couples. These new products are produced by making changes to the style and cut of the original DSuits and DGowns to to be sold under the names SSuits and SGowns respectively. Following are the monthly data for all the products:
| Joint Costs | SSuits | SGowns | |
Joint Costs of Textile and Yarn | $1,000,000 |
|
| |
Separable Costs |
|
| $1,800,000 | $4,500,000 |
| DSuits | DGowns | SSuits | SGowns |
Beginning Inventory | 0 | 0 | 0 | 0 |
Production (in Units) | 4,000 | 6,000 | 4,000 | 6,000 |
Transfer to further process (in Units) | 4,000 | 6,000 |
|
|
Sales (in Units) |
|
| 4,000 | 6,000 |
Selling price per unit | $1,200 | $2,200 | $2,000 | $3,000 |
Required:
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