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company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A tA 3 per pound 10,000 pounds 7 per pound 22,000 pounds 12 per gallon 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A 53,000 $ 7 per pound $ 38,000 11 per pound $ 18,000 $ 18 per gallon Which products should be processed further by ProcessFur-7042? Multiple Choice O B and C O A and B O A and C O A, B, and C' " Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year The company's balance sheet as olJune 30th is shown below: Budget-6827 Corporation Balance Sheet June 30 Assets Cash s 33,000 Accounts receivable 126.000 Inventory 69,750 Plant and equipment. net of depreciation 220 000 Total assets 5498 50 Liabilities and Stockholders' Equity Accounts payable 3 31,000 Common stock 348,000 Retained earnings M Total liabilities and stockholders' equity $498,750 The company managers have made the following additional assumptions and estimates: 1, Estimated sales for July, August, September, and October will be $310,000, $330,000, $320,000, and $340,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All at the accounts receivable at June 30 will be collected in July. 3. Each month's ending Inventory must equal 30% of the cost of next month's sales. The cost of goods sold Is 75% of sales. The company pays '07 40% of Its merchandlse purchases in the month of the purchase and the remaining 60% In the month following the purchase. All ofthe accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $58,000. Each month $6,000 of this total amount is depreciation expense and the remaining $52,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. How much is the Budget-6827 Company's expected cash collections in the month oi August? Multiple Choice 0 $317,000 $201,500 $115,500 DOC) $214,500
