Question
TOPRAK A.. It produces G10 and H8 products after the separation point, 15.000 TL for G10 product and 45.000 for H8 product. After the additional
TOPRAK A.. It produces G10 and H8 products after the separation point, 15.000 TL for G10 product and 45.000 for H8 product. After the additional cost expense of TL, new products are produced under the names Super G10 and Super H8. 250 kg from Super G10, 400 from Super H8 kg is produced. The sales price of Super G10 is 400TL / kg, and the sales price of Super H8 is 800 TL / kg. Total combined to the point of separation costs are 255.000 TL. If desired, G10 product can be sold for 30.000 TL at the point of separation and H8 product can be sold for 70.000 TL. According to these data;
a) Distribute the combined cost using the gross profit rate method.
b) In your opinion, should the enterprise subject G10 and H8 products to additional production? Please explain.
c) Distribute the combined cost with the assumption that 420 kg of finished products with a market value of 10 TL / kg are released before the separation point.
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