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 |
| Cost to |
| Sales Value |
at Split-Off |
| Process | after Further | |||
Point |
| Further | Processing | |||
Product 10 |
| $59,500 |
| $100,400 |
| $191,000 |
Product 12 |
| 15,600 |
| 30,000 |
| 34,400 |
Product 14 |
| 55,600 |
| 150,400 |
| 215,300 |
Determine total net income if all products are sold at the split-off point. | ||||||
Net income |
| $ |
|
|
| |
Determine total net income if all products are sold after further processing. | ||||||
Net income | $ |
|
|
| ||
Product | Incremental profit (loss) | |||||
Product 10 |
|
| ||||
Product 12 |
|
| ||||
Product 14 |
|
| ||||
Determine total net income using the results from previous part. | ||||||
Net income | $ |
|
|
|
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