Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dance in the Dark, Inc., amoung other things, manufactures dolls. The monthly production from an initial joint process is as follows: At which point, 10,000

image text in transcribed

image text in transcribed

Dance in the Dark, Inc., amoung other things, manufactures dolls. The monthly production from an initial joint process is as follows: At which point, 10,000 units of product ( the basic doll )are ready for further processing. Since the units of production method is used to apply costs of the joint process to the units produced, the units go forward with a $20 cost so far. These units are further processed into three main models, Marilyn ( 4800 units ), Judy ( 3100 units ) and Sylvia (the remaining 2100). Assume that this product sales mix is not going to change, due to the constraints of demand. The further processing costs are added to the $20 to figure out the total per unit production cost. Further costs are as follows: At which point, the dolls are done and ready for sale. The Marilyn models sell for $102, the Judy for $73, and the Sylvia has been marked down lately to $62. Recently, Starstruck, Inc., a fellow dollmaker has stated that it is impressed with the quality of the company's basic doll, and would like to purchase this model from Dance in the Dark, and is willing to pay $33 per each of the basic model they are willing to sell. How many should Dance in the Dark be willing to sell? Show appropriate calculations to justify your response. Based on your solution, write up a budgeted income statement in good form, up to the monthly gross profit, based on the information presented above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

13th edition

1285868781, 978-1285868783

More Books

Students also viewed these Accounting questions

Question

2. Be clear and descriptive about your own emotions.

Answered: 1 week ago

Question

Work Problem 42 in Chapter 12.(Appendix)

Answered: 1 week ago