Hello Please help with this question. Brockton Company produces products A, B, and C from a joint production process. Each product may be sold at split-off or processed further. Joint production costs have been allocated to each product based on the number of each produced. Product Units Produced Sales Value Additional Sales Values and Costs if At Split-off ________Processed Further_______ Sales Values Added Costs A 6,000 $ 75,000 $100,000 $24,000 B 9,000 $ 80,000 $ 115,000 $25,000 C 4,000 $ 48,000 $ 58,000 $12,000 Which product(s) should be processed beyond the split-off point?
Hello Please help with this question. Brockton Company produces products A, B, and C from a joint production process. Each product may be sold at split-off or processed further. Joint production costs have been allocated to each product based on the number of each produced. Product Units Produced Sales Value Additional Sales Values and Costs if At Split-off ________Processed Further_______ Sales Values Added Costs A 6,000 $ 75,000 $100,000 $24,000 B 9,000 $ 80,000 $ 115,000 $25,000 C 4,000 $ 48,000 $ 58,000 $12,000 Which product(s) should be processed beyond the split-off point?
Related questions
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $43,000 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 | $ | 25,800 | $ | 17,200 | $ | 43,000 | ||||
| Sales value at split-off point | $ | 30,000 | $ | 20,000 | $ | 50,000 | ||||
| Costs of further processing | $ | 23,800 | $ | 18,100 | $ | 41,900 | ||||
| Sales value after further processing | $ | 47,000 | $ | 57,500 | $ | 104,500 | ||||
Required:
a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.)
b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point?
c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?
d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?
