Question
In: Accounting
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge:...
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows.
| Sales Value and Additional Costs If Processed Further |
|||||||||||||||||
| Product | Pounds Produced |
Sales Value at Split-Off | Final Sales Value |
Additional Cost |
|||||||||||||
| Sea Tea | 9,000 | $ | 60,000 | $ | 90,000 | $ | 35,000 | ||||||||||
| Sea Paste | 3,700 | 88,100 | 160,000 | 50,000 | |||||||||||||
| Sea Powder | 2,000 | 70,000 | 85,000 | 14,000 | |||||||||||||
Required:
A. What is the selling price per pound of Sea Paste at the split-off point at which the company is indifferent?
Solutions
ekkarill92 answered 3 years agoRelated Solutions
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge:...
Kelp Company produces three joint products from seaweed. At the
split-off point, three basic products emerge: Sea Tea, Sea Paste,
and Sea Powder. Each of these products can either be sold at the
split-off point or be processed further. If they are processed
further, the resulting products can be sold as delicacies to health
food stores. Cost and revenue information is as follows.
Sales Value and Additional
Costs If Processed Further
Product
Pounds
Produced
Sales Value at Split-Off
Final Sales...
ABC Company produces three products in a joint production process. At the split-off point, all three...
ABC Company produces three products in a joint production process.
At the split-off point, all three products are produced further and
then sold. Information about these products for 2019, the most
recent year, appears below: Product A Product B Product C Units
produced ............... 15,000 25,000 10,000 Selling price
................ $50 per unit $40 per unit $75 per unit Additional
processing costs .. $15 per unit $16 per unit $37.50 per unit Joint
costs for 2019 totaled $150,000. During 2019,...
Simpson Manufacturing Enterprises uses a joint production process that produces three products at the split-off point....
Simpson Manufacturing Enterprises uses a joint production
process that produces three products at the split-off point. Joint
production costs during April were $720,000. Product information
for April was as follows:
Product
R
S
T
Gallons produced
2,500
5,000
7,500
Sales prices per gallon:
At the split-off
$
100
$
80
$
20
After further processing
$
150
$
115
$
30
Costs to process after split-off
$
150,000
$
150,000
$
100,000
Required: (use a separate sheet to show your...
XYZ Company makes two products, W and P, in a joint process. At the split-off point,...
XYZ Company makes two products, W and P, in a joint process. At
the split-off point, 45,000 units of Product W and 70,000 units of
Product P are available each month. Monthly joint production costs
total $184,000 and are allocated to the two products equally.
Product W can either be sold at the split-off point for $6.10 per
unit or it can be processed further and then sold for $8.80 per
unit. If Product W is processed further, additional processing...
JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may...
JOINT PRODUCTS/SPLIT-OFF
Blanchard Manufacturing Company manufactures four products from
a joint production process. Each product may be sold at split-off
or processed further.
Sales
Value
Sales Values and Costs if
Product Units
Produced at
Split
Off Processed
Further______
Sales
Value Added
Costs
1
50,000
$215,000
$235,000
$15,000
2
25,000
$60,000
$98,000
$22,000
3
19,500
$180,000
$207,000
$30,000
4
8,700
$22,000
$39,000
$8,000
Which product(s) should be processed...
What is the split-off point? How would you approach a decision to sell joint products at...
What is the split-off point? How would you approach a decision
to sell joint products at the split-off point, or process those
products further? Give an example of a well-known company that
would have to make this decision and describe the products and
split-off point(s).
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...
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