Question
Stahl Inc. produces three separate products from a common process costing $100,800. Each of the products can be sold at the split-off point or can
Stahl Inc. produces three separate products from a common process costing $100,800. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.
Sales Value at Split-Off Point | Cost to Process Further | Sales Value after Further Processing | |||||||||||
Product 10 | $60,400 | $100,600 | $190,000 | ||||||||||
Product 12 | 15,600 | 30,100 | 35,400 | ||||||||||
Product 14 | 55,500 | 150,800 | 214,500 |
(a)
Determine total net income if all products are sold at the split-off point.
Net income | $Type your answer here |
b. Determine total net income if all products are sold after further processing
c. calculate incremental profit/loss and determine which products should be sold at the split-off point and which should be processed further
product 10
product 12
product 14
d. Determine total net income using the results from previous part
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