Question
XYZ has a joint processing activity that involves the production of three sandwiches Sandwich A Sandwich B Sandwich C The date related to costs and
XYZ has a joint processing activity that involves the production of three sandwiches
Sandwich A
Sandwich B
Sandwich C
The date related to costs and sales values are as follows:
Cost Data:
Cost 1: Cost of Meat $400,000 Joint Costs A
Cost 2: Cost of Cooking $ 80,000 Joint Costs B
Total Joint Costs $480,000
Initial Sales Value:
Initial Sales Value Sandwich A $240,000
Initial Sales Value Sandwich B $300,000
Initial Sales Value Sandwich C $120,000
Separate Costs (costs of further processing beyond the split-off point)
Separate Costs Sandwich A $90,000 Preparation Costs
Separate Costs Sandwich B $140,000 Preparation Costs
Separate Costs Sandwich C $30,000 Preparation Costs
Total Separate Costs $260,000 Total Costs C
Final Sales Value:
Final Sale Value Sandwich A $320,000
Final Sales Value Sandwich B $480,000
Final Sales Value Sandwich C $180,000
Total $980,000
Compute the total profit or loss for the company.
Compute the net monetary value of processing Sandwich A beyond the split-off point.
Compute the net monetary value of processing Sandwich B beyond the split-off point.
Compute the net monetary value of processing Sandwich C beyond the split-off point.
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