The Chapter 11 Form worksheet is to be used to create your own worksheet version of the main example in the text.

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell C26 enter the formula "= B5". Verify that your worksheet matches the example in the text.

Check your worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall financial advantage (disadvantage) from processing all intermediate products into final products should now be $150,000 and the financial advantage (disadvantage) from further processing undyed coarse wool should now be $10,000. If you do not get these answers, find the errors in your worksheet and correct them.

Chapter 11: Applying Excel
Data
Exhibit 11-7 Santa Maria Wool Cooperative
Cost of wool	$200,000
Cost of separation process	$40,000
Sales value of intermediate products at split-off point:
Undyed coarse wool	$120,000
Undyed fine wool	$150,000
Undyed superfine wool	$60,000
Costs of further processing (dyeing) intermediate products:
Undyed coarse wool	$50,000
Undyed fine wool	$60,000
Undyed superfine wool	$10,000
Sales value of end products:
Dyed coarse wool	$160,000
Dyed fine wool	$240,000
Dyed superfine wool	$90,000
Enter a formula into each of the cells marked with a ? below
Example: Joint Product Costs and the Contribution Approach
Analysis of the profitability of the overall operation:
Combined final sales value		?
Less costs of producing the end products:
Cost of wool	?
Cost of separation process	?
Combined costs of dyeing	?	?
Profit		?
Analysis of sell or process further:
	Coarse	Fine	Superfine
	Wool	Wool	Wool
Final sales value after further processing	?	?	?
Less sales value at the split-off point	?	?	?
Incremental revenue from further processing	?	?	?
Less cost of further processing (dyeing)	?	?	?
Financial advantage (disadvantage) of further processing	?	?	?