Question
In: Accounting
Southside Company manufactures three products from a common input in a joint processing operation. What is...
Southside Company manufactures three products from a common input in a joint processing operation. What is the financial advantage (disadvantage) of further processing each of the products beyond the split off point. Round each answer to the nearest whole dollar and include the $ sign and any necessary commas. Only answers in this format will be accepted.
Product Selling Price Annual Output
A $6 / lb 1,000 lbs
B $8 / lb 3,000 lbs
C $5 / gal 2,000 gallons
Further Processing requires no special facilities. Additional costs and selling price are given below:
Product Additional Processing Costs Selling Price
A $13,000 $20 / lb
B $80,000 $13 / lb
C $63,000 $32 / gal
Product A additional CM =
Product A additional cost =
Product A Advantage/Disadvantage =
Product A sell or process further =
Product B additional CM =
Product B additional cost =
Product B Advantage/Disadvantage =
Product B sell or process further =
Product C additional CM =
Product C additional cost =
Product C Advantage/Disadvantage =
Product C sell or process further =
Solutions
Expert Solution
Answer
| Product A additional CM = | $ 14,000 | |
| Product A additional cost = | $ 13,000 | |
| Product A Advantage/Disadvantage = | $ 1,000 | Advantage |
| Product A sell or process further = | Process Further | |
| Product B additional CM = | $ 15,000 | |
| Product B additional cost = | $ 80,000 | |
| Product B Advantage/Disadvantage = | $ (65,000) | Disadvantage |
| Product B sell or process further = | Sell | |
| Product C additional CM = | $ 54,000 | |
| Product C additional cost = | $ 63,000 | |
| Product C Advantage/Disadvantage = | $ (9,000) | Disadvantage |
| Product C sell or process further = | Sell |
Calculations:
| (Amount in $) | ||
| Product A additional CM = | =(20-6)*1,000 | |
| Product A additional cost = | 1,3000 | |
| Product A Advantage/Disadvantage = | =14,000-13,000 | Advantage |
| Product A sell or process further = | Process Further | |
| Product B additional CM = | =(13-8)*3,000 | |
| Product B additional cost = | 80,000 | |
| Product B Advantage/Disadvantage = | =15,000-80,000 | Disadvantage |
| Product B sell or process further = | Sell | |
| Product C additional CM = | =(32-5)*2,000 | |
| Product C additional cost = | 63,000 | |
| Product C Advantage/Disadvantage = | =54,000-63,000 | Disadvantage |
| Product C sell or process further = | Sell |
In case of any doubt, please comment.
In case of any doubt, please comment.
ekkarill92 answered 2 hours agoRelated Solutions
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, 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 $ 20.00 per pound
13,000 pounds B $ 14.00 per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $335,000 per quarter. For financial reporting
purposes, 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
$
17.00
per pound
12,400
pounds
B
$
11.00
per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $380,000 per quarter. For financial reporting
purposes, 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
$
26.00
per pound
14,200
pounds
B
$
20.00
per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $97,000 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
$
4
per pound
14,000
pounds
B
$
5
per pound
19,000
pounds
C...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $320,000 per quarter. For financial reporting
purposes, 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
$
14.00
per pound
11,800
pounds
B
$
8.00
per...
Joes Company manufactures three products from a common input in a joint processing operation. Joint processing...
Joes Company manufactures three products from a common input in
a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, 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
$
20.00
per pound
13,000
pounds
B
$
14.00
per...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $365,000 per quarter. For financial reporting
purposes, 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
$
23.00
per pound
13,600
pounds
B
$
17.00
per...
Gusler company manufactures three products from a common input in a joint processing operation. Joint processing...
Gusler 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
$
3
per pound
10,000
pounds
B
$
6
per pound
22,000
pounds
C...
Gusler company manufactures three products from a common input in a joint processing operation. Joint processing...
Gusler 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
$
4
per pound
10,000
pounds
B
$
6
per pound
22,000
pounds
C...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input
in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting
purposes, 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
$
16
per pound
15,000
pounds
B
$
8
per...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 7. Explain how a company could: (a) avoid a backlog of orders when sales exceed expectations;...
- Write a class "LinkedBag" which implements this interface. The LinkedBag class has two instance variables firstNode...
- Decision Making and relevant factors: You have an opportunity to choose a flight for your upcoming...
- Comments : For each function in your program, you must include a comment block that includes...
- What are the reasons for and against treating agriculture differently from a legal and policy standpoint?...
- The Company is LYNC Logistics, LLC. What is an organizational culture? Organizational culture-he system of shared...
- How would each of the following events change the equilibrium financial market value of a company?...
ADVERTISEMENT