The Alex Corporation produces three outputs: X, Y, ands Z from one input. The sales value...

The Alex Corporation produces three outputs: X, Y, ands Z from one input. The sales value of X at splitoff is $100,000. The sales value of Y at split off is $200,000 and the net realizable value of Z is $20,000. Final sales values are $200,000, $300,000 and $25,000 for X, Y, and Z, respectively. However, these prices are subject to erratic change. Additional processing costs for X, Y, and Z are $50,000, $75,000 and $10,000, respectively. The number of units of each product are 60,000 of X, 60,000 of Y and 30,000 of Z. The total joint costs are $150,000. (You may round your answers to the nearest dollar.) Required: You must upload your answer to canvas for this question in order to receive any credit. Reserve the last 10 minutes provided for this problem to do this. NO EMAIL SOLUTIONS WILL BE ACCEPTED FOR THIS PORTION OF THE EXAM, SO TIME MANAGEMENT IS OF UTMOST IMPORTANCE.. A pdf file is preferred or you may upload a picture of your solution. Show your work on your answer sheet.

At the top of your answer you must include your name and your student number!!

1. Diagram the joint cost process using the values above, as I did in class on our examples. (2 points) Write clearly!!!

2. Allocate joint costs to the three products using (each answer is worth 3 points – Circle your joint cost allocation for each product)

A. Physical Measures Method:

B. Sales Value at Split off Method:

C. Net Realizable Value Method:

D. Constant Gross Margin Method:

3. Which method do you prefer as a manager of the product if you wish to maximize profits? (3 points - show on your solution clearly)

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Corporation produces three outputs: X, Y, ands Z from one input. The sales value of X...

Corporation produces three outputs: X, Y, ands Z from one input. The sales value of X at splitoff is $100,000. The sales value of Y at split off is $200,000 and the net realizable value of Z is $20,000. Final sales values are $200,000, $300,000 and $25,000 for X, Y, and Z, respectively. However, these prices are subject to erratic change. Additional processing costs for X, Y, and Z are $50,000, $75,000 and $10,000, respectively. The number of units of...

WP Corporation produces products X, Y, and Z from a single raw material input in a...

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,900 2,400 3,400 Per unit sales value at split-off $ 17.00 $ 21.00 $ 19.00 Added processing costs per unit $ 2.00 $ 4.00 $ 4.00 Per unit sales value if processed further $ 22.00 $ 22.00 $ 27.00 The cost of the joint...

WP Corporation produces products X, Y, and Z from a single raw material input in a...

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,900 2,400 3,400 Per unit sales value at split-off $ 14.00 $ 18.00 $ 19.00 Added processing costs per unit $ 4.00 $ 6.00 $ 6.00 Per unit sales value if processed further $ 23.00 $ 23.00 $ 28.00 The cost of the joint...

If X, Y and Z are three arbitrary vectors, prove these identities: a. (X×Y).Z = X.(Y×Z)...

If X, Y and Z are three arbitrary vectors, prove these identities: a. (X×Y).Z = X.(Y×Z) b. X×(Y×Z) = (X.Z)Y – (X.Y)Z c. X.(Y×Z) = -Y.(X×Z)

Monica's Manufacturing produces three products: X, Y, and Z. It has fixed costs of $18,000. X...

Monica's Manufacturing produces three products: X, Y, and Z. It has fixed costs of $18,000. X Y Z Unit selling price $100 $130 $210 Unit variable costs $60 $30 $180 Labor-hours per unit 4 5 3 a. What is the break-even point (in units) if Monica were to sell only product X? b. What is the break-even point (in units) if Monica sells products X, Y, and Z according to the following sales-mix? X Y Z Sales Mix 55% 15%...

Three segments (X, Y and Z) of Truly Company have net sales of $ 200,000, $...

Three segments (X, Y and Z) of Truly Company have net sales of $ 200,000, $ 75,000, and $ 125,000, respectively. A decision is made to allocate the pool of $ 30,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation. How much of the $30,000 should be allocated to each segment?

Given function f(x,y,z)=x^(2)+2y^(2)+z^(2), subject to two constraints x+y+z=6 and x-2y+z=0. find the extreme value of f(x,y,z)...

Given function f(x,y,z)=x^(2)+2*y^(2)+z^(2), subject to two constraints x+y+z=6 and x-2*y+z=0. find the extreme value of f(x,y,z) and determine whether it is maximum of minimum.

The curried version of let f (x,y,z) = (x,(y,z)) is let f (x,(y,z)) = (x,(y,z)) Just...

The curried version of let f (x,y,z) = (x,(y,z)) is let f (x,(y,z)) = (x,(y,z)) Just f (because f is already curried) let f x y z = (x,(y,z)) let f x y z = x (y z)

BC Company sells three products, X, Y, and Z. During October, Product X had sales of...

BC Company sells three products, X, Y, and Z. During October, Product X had sales of $500,000; Product Y had sales totaling $300,000; and Product Z reported sales of $200,000. ABC Company as a whole reported total fixed costs of $443,000, a total segment margin of $77,000, and a net income of $53,000. The traceable fixed costs for Product X amounted to $80,000 during October and the traceable fixed costs for Product Z were $60,000 in October. Calculate the traceable...

Let X, Y ⊂ Z and x, y ∈ Z Let A = (X\{x}) ∪ {x}....

Let X, Y ⊂ Z and x, y ∈ Z Let A = (X\{x}) ∪ {x}. a) Prove or disprove: A ⊆ X b) Prove or disprove: X ⊆ A c) Prove or disprove: P(X ∪ Y ) ⊆ P(X) ∪ P(Y ) ∪ P(X ∩ Y ) d) Prove or disprove: P(X) ∪ P(Y ) ∪ P(X ∩ Y ) ⊆ P(X ∪ Y )

Subjects