Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ZWYWIJ448 corporation manufactures three products from a joint process. The three products are in industrial grade form at the spilt-off point. They can either be
ZWYWIJ448 corporation manufactures three products from a joint process. The three products are in industrial grade form at the spilt-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is as follows:
Product 1 | Product 2 | Product 3 | |
Sales Price at spilt-off point | $16 | $12 | $5 |
Allocated joint costs | $6,000 | $6,000 | $6,000 |
Sales Price after further processing | $20 | $18 | $14 |
Cost of further processing | $6,340 | $3,110 | $1,520 |
Product Quantity | 1,000 lb. | 1,000 lb. | 1,000 lb. |
What would be the additional amount of profit that ZWYWIJ448 Corp. would gain form further processing the product(s) that is/are more profitable to process further rather than be sold at the spilt-off point ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started