Valdosta Chemical Company manufactures two industrial chemicalproducts in a joint process. In May, 10,000 gallons of inputcosting $60,000 were processed at a cost of $150,000. The jointprocess resulted in 8,000 pounds of Resoline and 2,000 pounds ofKrypto. Resoline sells for $25 per pound, and Krypto sells for $50per pound. Management generally processes each of these chemicalsfurther in separable processes to produce more refined chemicalproducts. Resoline is processed separately at a cost of $5 perpound. The resulting product, Resolite, sells for $35 per pound.Krypto is processed separately at a cost of $15 per pound. Theresulting product, Kryptite, sells for $95 per pound. Required:2-a. Allocate the companyâs joint production costs for May usingthe physical-units method. 2-b. Allocate the companyâs jointproduction costs for May using the relative-sales-value method.2-c. Allocate the companyâs joint production costs for May usingthe net-realizable-value method. 3-a. Valdostaâs management isconsidering an opportunity to process Kryptite further into a newproduct called Omega. The separable processing will cost $40 perpound. Packaging costs for Omega are projected to be $6 per pound,and the anticipated sales price is $130 per pound. Calculate theincremental profit or loss from processing Kryptite into Omega.3-b. Should Kryptite be processed further into Omega? (Thesolutions to this problem that are already posted are not right andunclear please help!!!!!!
Valdosta Chemical Company manufactures two industrial chemicalproducts in a joint process. In May, 10,000 gallons of inputcosting $60,000 were processed at a cost of $150,000. The jointprocess resulted in 8,000 pounds of Resoline and 2,000 pounds ofKrypto. Resoline sells for $25 per pound, and Krypto sells for $50per pound. Management generally processes each of these chemicalsfurther in separable processes to produce more refined chemicalproducts. Resoline is processed separately at a cost of $5 perpound. The resulting product, Resolite, sells for $35 per pound.Krypto is processed separately at a cost of $15 per pound. Theresulting product, Kryptite, sells for $95 per pound. Required:2-a. Allocate the companyâs joint production costs for May usingthe physical-units method. 2-b. Allocate the companyâs jointproduction costs for May using the relative-sales-value method.2-c. Allocate the companyâs joint production costs for May usingthe net-realizable-value method. 3-a. Valdostaâs management isconsidering an opportunity to process Kryptite further into a newproduct called Omega. The separable processing will cost $40 perpound. Packaging costs for Omega are projected to be $6 per pound,and the anticipated sales price is $130 per pound. Calculate theincremental profit or loss from processing Kryptite into Omega.3-b. Should Kryptite be processed further into Omega? (Thesolutions to this problem that are already posted are not right andunclear please help!!!!!!
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