Cows Creamery Company makes two products from a common input. Joint processing costs up to the...

Cows Creamery Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

	Gooey Mooey	Wowie Cowie	Total
Allocated Joint processing costs	$22,000	$19,600	$41,600
Sales value at split-off point	$32,000	$28,000	$60,000
Costs of further processing	$11,600	$25,300	$36,900
Sales value after further processing	$40,800	$54,200	$95,000

Required:

What is the net monetary advantage (disadvantage) of processing Gooey Mooey beyond the split-off point?
What is the net monetary advantage (disadvantage) of processing Wowie Cowie beyond the split-off point?
What is the minimum amount the company should accept for Gooey Mooey if it is to be sold at the split-off point?
What is the minimum amount the company should accept for Wowie Cowie if it is to be sold at the split-off point?

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

ABC Company makes two products from a common input. Joint processing costs up to the split-off...

ABC Company makes two products from a common input. Joint processing costs up to the split-off point total $51,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product A Product B Total Allocated joint processing costs $ 30,900 $ 20,600 $ 51,500 Sales value at split-off point...

Iaci Company makes two products from a common input. Joint processing costs up to the split-off...

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $48,900 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 19,100 $ 29,800 $ 48,900 Sales value...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $46,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,400 $ 27,600 $ 46,000 Sales value at split-off point...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $48,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 19,200 $ 28,800 $ 48,000 Sales value at split-off point...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $50,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 30,300 $ 20,200 $ 50,500 Sales value at split-off point...

Iaci Company makes two products from a common input. Joint processing costs up to the split-off...

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs 22,400 19,600 42,000 Sales value at split off point 32,000 28,000 ...

bsen Company makes two products from a common input. Joint processing costs up to the split-off...

bsen Company makes two products from a common input. Joint processing costs up to the split-off point total $51,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 30,900 $ 20,600 $ 51,500 Sales value at split-off point...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off...

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,700 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,600 $ 29,100 $ 47,700 Sales value at split-off point...

bsen Company makes two products from a common input. Joint processing costs up to the split-off...

bsen Company makes two products from a common input. Joint processing costs up to the split-off point total $53,700 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 20,400 $ 33,300 $ 53,700 Sales value at split-off point...

Gutten company makes three products from a common input in a joint processing operation. Joint processing...

Gutten company makes 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 $ 5 per pound 10,000 pounds B $ 7 per pound 22,000 pounds C...

Subjects