Question

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 beyond the split-off point?

Answer 1

ANS :- ANSWER THE FOLLOWING QUESTION AS BELLOW -

JOINT PRODUCT/SPLIT -OFF

BLANCHARD MANUFACTURING COMPANY MANUFACTURES FOUR PRODUCTS FROM A JOINT PRODUCTION PROCESS  .EACH MAY BE SOLD AT SPLIT-OFF OR PROCESSED FURTHER-

CALCULATED THE PROFIT PER UNIT AND COST PER UNIT BY FURTHER PROCESS.

PARTICULAR	UNIT PRODUCE	UNIT PRODUCE	UNIT PRODUCE	UNIT PRODUCE
NO OF UNIT PRODUCE	50000	25000	19500	8700
NO OF UNIT PRODUCE COST ARE	$215000	$60000	$180000	$22000
PER UNIT COST UNIT PRODUCE	$4.3	$2.4	$9.23	$2.52
ADDED COST	$15000	$22000	$30000	$8000
TOTAL COST OF UNIT PREPARE AT SOLD IN MARKET	$230000	$82000	$210000	$30000
TOTAL SALES VALUE ARE	$235000	$98000	$207000	$39000
PROFIT FOR THE YEAR-	$5000	$16000	-$3000	$9000
PROFIT PR UNIT IN %	16%	64%	LOSS 15%	103%

THE ALL ABOVE INFORMATION CALCULATED IN LAST CONCLUSITION UNIT 19500 PRODUCTION IN OFF AND OTHER UNIT PRODUCTION IS IMPROVE .

UNIT 50000 IS PROFIT ARE $5000

UNIT 25000 IS PROFIT ARE $16000 GOOD CONDITION

UNIT 19500 IS PROFIT NOT ONLY LOSS ARE -$3000 THIS CONDITION IN BAD FOR COMPANY

UNIT 8700 IS PROFIT ARE $9000 THIS IS BEST CONDITION